africa economic growth 2019

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. Most finance ministers had a pretty successful track record as South Africa's economy had very few periods of negative economic growth over the last 22 years. Africa’s GDP growth is expected to fall from 3.5% in 2019 to between 2.5% and 1.5% in 2020. This figure is close to 20 percent of the new entrants to the labor force every year. A rise in confidence in early 2018 and the recent upward revision of national accounts for the period 2015 to 2017 suggest that the country is recovering from a difficult 2015 and 2016, which marked the end of the super-commodity cycle and severe drought. 2. 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. The rapid growth achieved in Africa in the past two decades has not been proemployment. But it is insufficient to make a dent in unemployment and poverty. 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). by SAnews. Gross domestic product (GDP) is the market value of all final goods and services from a nation in a given year. African economy’s performance over the remainder of the year. 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%. 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. As a result of the dismal Q4 performance, South Africa’s economy only grew 0.2% in 2019, its worst showing since the throes of global financial crisis in 2009, when it shrank 1.5%. East Africa remains a key driver of the continent's aggregate growth. Source: Authors' compilation based on various sources reported in the references. Growth in Southern Africa is expected to remain moderate in 2019 and 2020 after a modest recovery in 2017 and 2018. Removing nontariff barriers with countries outside Africa could increase trade and boost the continent’s tariff revenues by up to $15 billion. 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. 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. 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. Industrial policies could benefit from assessing production knowledge and identifying competitive products to inform the design of robust national and subnational industrial strategies. Thanks for reading and for your interest in Africa. This forecast would change in the event of a deteriorating global economy. 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'. Africa’s sustainable economic and social transformation is a global priority. The expansion momentum is expected to strengthen Skyline of Addis Ababa, Ethiopia. South Africa. At the heart of this slow growth are the major headwinds of high inflation, increasing government debt, and slow growth in South Africa, … Telecommunications, banking, and retailing are flourishing. Vigorous public finance policy interventions are needed in tax mobilization, tax reform, and expenditure consolidation to ensure debt sustainability. 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 share of the population living below the national poverty line decreased from 30% in 2011 to 24% in 2016. UNECA April 2020 (ECA, 2020[12]) Africa’s GDP growth prospects are likely to drop from 3.2% in 2019 to between 1.8% and -2.6% in 2020 depending on policy response. 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. 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. Africa’s general economic performance continues to recover and GDP growth is projected to accelerate to 4.0 percent in 2019 and 4.1 percent in 2020. 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. Major commodity-exporting countries saw a mild uptick or a decline (Angola, –0.7 percent), while Nigeria and South Africa, the two largest countries, are pulling down Africa’s average growth. Nigeria’s GDP will expand by 2.3 percent in 2019, which is below the rate of population growth, as the government struggles to reduce the nation’s oil dependence and attract foreign investment. Higher economic growth brought with it positive trends in poverty reduction in both urban and rural areas. Mining was down by 6,1%, driven largely by a fall in the production of platinum group read more » Statistics South Africa (StatsSA) reported on June 4 that the South African economy contracted by 3.2% quarter-on-quarter (q-o-q) during the first quarter of 2019 – the biggest decline in 10 years. The report states that a “concerted industrialization effort that builds on countries’ comparative advantage,” is required. The expected recovery, however, is at a slower pace than previously envisaged for about two-thirds of the countries in the region, partly due to a challenging external environment. Your browser is not up-to-date. “To develop cross-border supply chains, improving customs management and adopting simple and transparent rules of origin, are essential,” the report notes. In has been Small and medium firms have had very little chance of growing into large firms. iii Africa’s economic outlook continues to brighten. Africa’s labor force is projected to be nearly 40 percent larger by 2030. (A 0.2 percent tariff on imports from high-income countries could bring in $850 million to finance trade facilitation projects.). Skyline of Addis Ababa, Ethiopia East African nations are expected to experience mixed economic growth in 2019, an analyst said on Tuesday. 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