Gross domestic product (GDP) growth is projected to gather pace, increasing from 1.3 percent in 2017 to 1.4 percent in 2018, 1.8 percent in 2019, and 1.9 percent in 2020. The African Continental Free Trade Area is a landmark achievement, in the context of the continent’s long and rich history, in fostering regional integration to unify the continent. Thanks for reading and for your interest in Africa. The 2019 report focuses on three key areas - Africa’s macroeconomic performance and prospects; Jobs, growth, and firm dynamism and Integration for Africa’s economic prosperity. If you are interested in telling stories in an impactful way to shine a spotlight on a particular issue, please email editor@africa.com. The African Continental Free Trade Area will lead to the creation of a single continental market of more than 1.3 billion people, with a combined annual output of $2.2 trillion. A full set of updated growth projections will be released in May 2019, ahead of the Bank’s Annual Meetings in Malabo, Equatorial Guinea. GDP Annual Growth Rate in Central African Republic averaged 1.26 percent from 1961 until 2019, reaching an all time high of 9.48 percent in 1984 and a record low of -37 percent in 2013. Focus: South Africa South Africa’s economic outlook has deteriorated over the past year due to persistent policy uncertainty and indications that energy constraints will be much more severe than previously expected. With an estimated population of 200 million, the West African country boast of $376.284bn in GDP, making Nigeria the highest GDP in Africa. Six West African countries [Côte d’Ivoire (3), Senegal (5), Burkina Faso (6), Ghana (8), Benin (9) and Guinea(10)] ranked in the top 10 in Africa in 2018 in terms of real GDP growth. Source: Authors' compilation based on various sources reported in the references. South Africa's economy grew by an annualized 66.1 percent in the third quarter of 2020, recovering from a record 51.7 percent slump in the April-June period and easily beating market expectations of … South Africa’s economic outlook has improved. Your browser is not up-to-date. World Bank report indicates South Africa GDP growth will expand by 1.3% in 2019 A slash in expected GDP numbers makes 2019 a somber year for the economy. View the complete African Economic Outlook report. South Africa Economic Growth After this year’s projected contraction at the hands of Covid-19, the economy is seen rebounding in 2021 as domestic and foreign demand revive. But improved macroeconomic and employment outcomes require industry to lead growth, according to the 2019 African Economic Outlook report, launched today by the African Development Bank. Economic recovery in sub-Saharan Africa is set to continue with growth projected to pick up from 3 percent in 2018 to 3.5 percent in 2019. This in turn would contribute to a broader rebound among commodity exporters, emerging … Higher economic growth brought with it positive trends in poverty reduction in both urban and rural areas. Vigorous public finance policy interventions are needed in tax mobilization, tax reform, and expenditure consolidation to ensure debt sustainability. Real GDP rose by 4.9 percent a year from 2000 through 2008, more than twice its pace in the 1980s and ’90s. This remains the case according to the April 2019, 19th edition of Africa’s Pulse , which estimates GDP growth in 2018 at a lower-than-expected 2.3%, with a forecast to 2.8% in 2019. Gross domestic product (GDP) growth is Estimates from Enterprise Surveys show that 1.3–3 million jobs are lost every year due to administrative hurdles, corruption, inadequate infrastructure, poor tax administration, and other red tape. Improved economic growth across Africa has been broad, with variation across economies and regions. Regional growth in 2018 is below the pace projected in 2018 October issue of Africa's Pulse {0.4 percentage points lower). Its real GDP growth, estimated at 3.4 percent for 2019, is projected to accelerate to 3.9 percent in 2020 and to 4.1 percent in 2021. Governance indicators broadly corroborate this view. And the financial and banking sector should be under careful supervision by a unionwide independent institution. Offended by one-sided coverage of wars, disasters and disease, the founders of Africa.com created a website that provides a balanced view of Africa – current events, business, arts & culture, travel, fashion, sports, information, development, and more. Growth in sub-Saharan Africa is projected to remain at 3.2 percent in 2019 and rise to 3.6 percent in 2020. Reviving Africa’s industrialization requires a commitment to improve the climate that supports firm growth. Three facts about small business turnover in South Africa. Economic growth is pro-jected to remain strong, at 5.9 percent in 2019 and 6.1percent in 2020. The AfDB’s 2019 African Economic Outlook says that, while North Africa leads in terms of growth recovery, East Africa is still the most dynamic region in the continent. Skyline of Addis Ababa, Ethiopia East African nations are expected to experience mixed economic growth in 2019, an analyst said on Tuesday. This implies that close to 100 million young people could be without jobs. That said, high unemployment and persistent electricity shortages are likely to weigh on growth, while frail fiscal metrics and a ballooning public debt stock pose additional risks. Non-resource-rich countries—supported by higher agricultural production, increasing consumer demand, and rising public investment—are growing fastest (Senegal, 7 percent; Rwanda, 7.2 percent; Côte d’Ivoire, 7.4 percent). Africa’s economic pulse has quickened, infusing the continent with a new commercial vibrancy. Africa’s GDP growth is expected to fall from 3.5% in 2019 to between 2.5% and 1.5% in 2020. Timely implementation of public infrastructure and oil-related projects Africa’s infrastructure financing needs are estimated to be $130–$170 billion a year. Improved economic growth across Africa has been broad, with variation across economies and regions. The Continental Free Trade Agreement (CFTA) can offer substantial gains for all African countries as new and timely analytics show. East Africa remains a key driver of the continent's aggregate growth. Removing nontariff barriers with countries outside Africa could increase trade and boost the continent’s tariff revenues by up to $15 billion. Data suggest parts of the continent are now experiencing fast growth, thanks to their resources and increasing political stability and 'has steadily increased levels of peacefulness since 2007'. “To develop cross-border supply chains, improving customs management and adopting simple and transparent rules of origin, are essential,” the report notes. South Africa. ‘Africa’s economic growth remained stable in 2019’ Akinwumi Adesina. (A 0.2 percent tariff on imports from high-income countries could bring in $850 million to finance trade facilitation projects.). This remains the case according to the April 2019, 19th edition of Africa’s Pulse, which estimates GDP growth in 2018 at a lower-than-expected 2.3%, with a forecast to 2.8% in 2019. Agriculture was the main drag on growth in 2019, followed by construction, mining and manufacturing. Growth in Southern Africa is expected to remain moderate in 2019 and 2020 after a modest recovery in 2017 and 2018. IMF data in 2017 revealed that the country's GDP grew by 1.3%, just higher than the National Treasury’s expectation of 1.0%. For countries in a monetary union, well-functioning, cross-country fiscal institutions and rules are needed to help members respond to asymmetric shocks. But economic performance remains bifurcated. This figure is close to 20 percent of the new entrants to the labor force every year. Although growth is projected to turn mildly positive this year, low oil prices and much-needed reforms will keep the economy under pressure. GDP growth is, therefore, forecast to rise from an estimated 0.8% in 2018 to 1.6% and 2.0% in 2019 and 2020, respectively. Regional growth in 2018 is below the Other non oil export include; cocoa, and rubber. The forecast for 2019 is 0.5 percentage point lower than in the April WEO, largely due to the downward revision to the forecast for Iran (owing to the crippling effect of tighter US sanctions). It also provides relevant and essential reference material on Africa’s economic development, for researchers, investors, civil society organisations, and development partners. Growth in Central Africa is gradually recovering but remains below the average for Africa as a whole. Significantly, the report identifies five key trade policy actions that could potentially bring Africa’s total gains to 4.5 percent of its GDP, or U$134 billion a year: The African Economic Outlook bridges a significant knowledge gap with respect to African economies through regular, rigorous, and comparative analysis. The Bank’s Director of Macroeconomic Policy Forecasting and Research Department, Hanan Morsy, provided participants with the report’s “storyline” and noted that in spite of a rising national debt across Africa, “there is no systemic risk of debt crisis.”. In fact, Nigeria is Africa’s largest crude oil supplier. At the current rate of labor force growth, Africa needs to create about 12 million new jobs every year to prevent unemployment from rising. Growth remains insufficient to address the structural challenges of persistent current and fiscal deficits and debt vulnerability. Gross domestic product (GDP) is the market value of all final goods and services from a nation in a given year. One way to accelerate growth in the medium to long term and overcome the structural challenges is to shift imports to intermediate and capital goods and away from nondurable consumption goods. The economic outlook for Sub-Saharan Africa (SSA) is positive, with growth rising to 5.3% in 2012, and 5.6% in 2013, over the pre-crisis average level of 5%. Growth in the Middle East, North Africa, Afghanistan, and Pakistan region is expected to be 1.0 percent in 2019, rising to about 3.0 percent in 2020. East African nations are expected to experience mixed economic growth in 2019, an analyst said on Tuesday. The World Trade Organization’s Trade Facilitation Agreement (TFA) is expected to reduce trading costs by 14–18 percent and increase world trade by 0.5 percent, with developing and especially least developed countries benefiting the most. To dodge the informality trap and chronic unemployment, Africa needs to industrialize. Public-sector spending on infrastructure (referred to as capital expenditure) decreased for a third consecutive year, falling from R250 billion in 2018 to R231 billion in 2019 according to Stats SA’s latest Capital expenditure by read … African regions. East Africa, the fastest growing region, is projected to achieve growth of 5.9 percent in 2019 and 6.1 percent in 2020. But it is insufficient to make a dent in unemployment and poverty. The annual report highlights economic prospects and projections for the continent as a whole and for each of the 54 countries. African economies have prematurely deindustrialized as the reallocation of labor has tilted toward services, limiting the growth potential of the manufacturing sector. Industrial policies could benefit from assessing production knowledge and identifying competitive products to inform the design of robust national and subnational industrial strategies. Southern Africa’s subdued growth is due mainly to South Africa’s weak development, which affects neighboring countries. Further, it also compares the share of the global GDP pie taken by key countries and regions over time. Domestically, risks from increasing vulnerability to debt distress in some countries, security and migration concerns, and uncertainties associated with elections and political transition could weigh on growth. Countries in the Middle East and North Africa (MENA) progress in improving economic governance. It offers short and medium term forecasts on the main socio-economic factors such as jobs, while at the same time examining the challenges and progress. Africa’s labor force is projected to be nearly 40 percent larger by 2030. In Between 2010 and 2018, growth averaged almost 6 percent, with Djibouti, Ethiopia, Rwanda, and Tanzania recording above-average rates. For optimum experience we recommend to update your browser to the latest version. Markedly slower growth in China and its effect on demand for Africa’s exports will, however, hold more serious economic implications for the continent. It then explores the economics of regional integration in Africa and the policies that can make it deliver economic prosperity. WASHINGTON, April 8, 2019 – The growth story in Sub-Saharan Africa in the past few years has been one of faltering recovery from the worst economic crisis of the past two decades. We support the implementation of the African Union’s strategic vision at continental, regional, national and local levels by co-producing cutting-edge data and analysis with our African member states and partners, and facilitating an open dialogue on policies to accelerate that transformation. Uganda's Economic Outlook in Six Charts May 9, 2019 Uganda’s economy continues its robust recovery with projected growth of 6.3 percent in FY2018/19. The rapid growth achieved in Africa in the past two decades has not been proemployment. Of Africa’s projected 4 percent growth in 2019, North Africa is expected to account for 1.6 percentage points, or 40 percent. As of 2007, growth in Africa had surpassed that of East Asia . Blue Economy Movement Gains Traction in Africa, Challenges and Best Practices for Productive Use of African Micro-grids, Study: Africa’s Biggest “Digital Divide” Lies In Its Rural Areas, Property and Lifestyle in Blouberg Cape Town, 5 Top Opportunities for Investment in Djibouti, The Road To Achieving Internet Access For All In Africa. To move to systemwide rules of origin and avoid product-specific rules of origin, regional economic community (REC) member countries should move to a single value added rule— say, 40 percent of value added from within the REC—with a more lenient threshold for less developed countries. The focus of the 2019 report on regional integration for Africa’s economic prosperity, highlights integration for trade and economic cooperation and the delivery of regional public goods. Thanks for reading and for your interest in Africa. Economic growth in Sub-Saharan Africa is estimated to have decelerated from 2.5 percent in 2017 to 2.3 percent in 2018, below the rate of growth of population for a fourth consecutive year. Bold reforms, especially at the institutional level, can synchronize financial governance frameworks across Africa and remove any remaining legal restrictions to cross-border financial flows and transactions. Leading the way are six economies among the Angola’s real GDP, meanwhile, looks to have contracted for a fourth straight year in 2019. Content is produced in collaboration between Africa.com’s editorial team and our partners — including nongovernmental organizations, private sector stakeholders, agencies and institutions. But in several countries, notably Burundi and Comoros, growth remains weak due to political uncertainty. The larger Eastern Africa region. The report states that a “concerted industrialization effort that builds on countries’ comparative advantage,” is required. To close Africa’s infrastructure deficit, RECs could consider regional infrastructure bonds, while countries could further mobilize domestic resources and provide incentives for the private sector to join public–private partnership operations for regional public infrastructure. But total commitments came to just $63 billion in 2016, representing a financing gap of approximately $67–$107 billion a year. Africa’s general economic performance continues to improve, but it remains insufficient to address the structural challenges,” A. Adesina, Five policy actions could raise Africa’s total gains to 4.5 percent of its GDP, or $134 billion a year. Africa's economic growth in 2018 will continue in 2019 in sub-Saharan Africa, averaging 3.6% over the next two years, according to World Bank estimates. CNN Explores Modern-day Africa With New-look Inside Africa, What Renewable Energy And Home Repair Have In Common, How Automation Is Changing The Landscape Of The African Labor Market, DRC Energy & Infrastructure Investment Summit 2021, Ms Campbell Becomes the Face of Kenya Travel, Niger Puts its Best Foot Forward with Exhibition, Somizi’s Cookbook Beats Jamie Oliver to ‘Highest Selling’ in South Africa. African economy’s performance over the remainder of the year. The growth story in Sub-Saharan Africa in the past few years has been one of faltering recovery from the worst economic crisis of the past two decades. Published annually since 2003, the African Development Bank’s flagship report provides headline numbers on Africa’s economic performance and outlook. iii Africa’s economic outlook continues to brighten. With a GDP of $349.299bn, South Africa is the second largest economy in the continent. And though lower than China’s and India’s growth, Africa’s is projected to be higher than that of other emerging and developing countries. ICBT is highest in in Eastern Africa and could be worth as much as 80 per cent of value of formal trade in some countries. - eliminating all applied bilateral tariffs in Africa; - keeping rules of origin simple, flexible, and transparent; - removing all nontariff barriers on goods and services; - implementing the World Trade Organization’s Trade Facilitation Agreement to reduce cross border time and transaction costs tied to nontariff measures and ; - negotiating with other developing countries to reduce their tariffs and nontariff barriers, by 50%. Guest speakers included Kanny Diallo, Minister of Planning and International Cooperation for the Republic of Guinea and Alma Oumarou, Minister and Special Advisor to the African Union Champion for Regional Integration. Unlike many global publications, for nearly a decade we have been committed to showing a complete picture of Africa – not just a single story. Global growth is now projected to slow from 3.6 percent in 2018 to 3.3 percent in 2019, before returning to 3.6 percent in 2020. Regional growth is set to pick up from 3 percent in 2018 to 3.5 percent in 2019, before stabilizing at close to 4 percent over the medium term. Economic growth in Sub-Saharan Africa is estimated to have decelerated from 2.5 percent in 2017 to 2.3 percent in 2018, below the rate of growth of population for a fourth consecutive year. Policymakers need to adopt countercyclical policy measures to stabilize inflation and reduce growth volatility. Debt and deficit policies should be consistent across the union and carefully monitored by a credible central authority. Africa’s economic growth continues to strengthen, reaching an estimated 3.5 percent in 2018, about the same as in 2017 and up 1.4 percentage points from the 2.1 percent in 2016. The Electricity markets in Africa have developed vertically within national boundaries rather than horizontally across countries. The Continental Free Trade Agreement (CFTA), signed in March 2018 by 44 African countries, offers substantial gains for all African countries the report says, citing new data and analytics. For optimum experience we recommend to update your browser to the latest version. The countries with the highest economic growth are Ethiopia, Rwanda, Tanzania, Kenya, and Djibouti. The Gross Domestic Product (GDP) in Central African Republic expanded 4.50 percent in 2019 from the previous year. Africa Growth Initiative, Global Economy and Development Brookings Institution As 2019 begins, reasons for optimism about Africa’s ability to capitalize on the progress The Southern Africa economy is projected to grow slower than others in the continent —at 2.2percent in 2019 and 2.8 percent in 2020. African Economic Outlook 2019 Macroeconomic performance and prospects Jobs, growth, and firm dynamism Integration for Africa’s economic prosperity African Economic Outlook iii The state of the continent is good. Mining, manufacturing and transport were the biggest drags on growth in gross domestic product (GDP). For a sample of African countries, a 1 percent increase in public savings (by reducing the budget deficit) is correlated with a 0.7 percent improvement in the current account balance. Growth for 2019 is now projected at 0.8%, half a percentage point lower than April’s forecast and unchanged from 2018, according to the bank’s October Africa’s Pulse report. GDP growth (annual %) - Sub-Saharan Africa from The World Bank: Data Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). As government introduces new legislation to further support small, medium and micro-sized enterprises (SMMEs), recently released data from the 2019 Annual Financial Statistics (AFS) survey shows the growing role that small businesses play in the formal business sector. Structural reforms urgently needed as annual growth drops to 0% y-o-y. East Africa led with GDP growth estimated at 5.7 percent in 2018, followed by North Africa at 4.9 percent, West Africa at 3.3 percent, Central Africa at 2.2 percent, and Southern Africa at 1.2 percent. They should also exempt shipment sizes below $1,000. Firm growth and survival are held back by corruption, an unconducive regulatory environment, and inadequate infrastructure. We support the implementation of the African Union’s strategic vision at continental, regional, national and local levels by co-producing cutting-edge data and analysis with our African member states and partners, and facilitating an open dialogue on policies to accelerate that transformation. The 2019 African Economic Outlook report analyses gains of regional public goods, including synchronizing financial governance frameworks, opening regional aviation to competition, and facilitating the free movements of people, goods, and services through open borders. Judd Murigi, head of research, ICEA LION Asset Management, told a media briefing in Nairobi that Kenya and Rwanda are expected to achieve decelerated Gross Domestic Product (GDP) growth in 2019 as compared to last year. Growth is projected to remain strong in non-resource-intensive countries, averaging about 6 percent. But average GDP growth in North Africa is erratic because of Libya’s rapidly changing economic circumstances. Driven by the economic fallout of the COVID-19 pandemic, growth in Sub-Saharan Africa is predicted to fall to -3.3% in 2020, pushing the region into its first recession in 25 years. The positive growth outlook is clouded by downside risks. Implementing the TFA would increase the gains to about 4.5 percent of Africa’s GDP, or an additional $31 billion, bringing the total real income gains to $134 billion. The full report is available online in English, French, and Portuguese at: https://www.afdb.org/aeo, African Economic Outlook 2019: Africa growth prospects remain steady, industry should lead growth, Macro-economics Policy, Forecasting and Research, Independent Development Evaluation (IDEV), ‘The state of the continent is good. Africa's GDP growth is projected to accelerate to 4.0 percent in 2019 and 4.1 percent in 2020 - but improved macroeconomic and employment outcomes require industry to lead growth, according to the 2019 African Economic Outlook report. After rebounding by a revised 3,2%1 in the second quarter of 2019, activity in the South African economy slipped slightly in the third quarter. Although global economic output is recovering from the collapse triggered by COVID-19, it will remain below pre-pandemic trends for a prolonged period. This forecast would change in the event of a deteriorating global economy. Regional growth in 2018 is below the pace projected in 2018 October issue of Africa's Pulse {0.4 percentage points lower). This resulted in the economy being no larger in 2019Q1 than it was a year earlier. It is supported by recovering commodity prices and higher agricultural output. North Africa's economic outlook remains positive with anticipated growth rate of 4.6 percent in 2019 compared to 4.1 percent recorded in 2017. 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