…says economic activities slid by 3.7% last year
World Bank says African Region will experience extreme poverty and low living standards in 2021, even as economic activities dropped by 3.7 percent last year.
The World Bank spoke on the backdrop of Africa having been hit hard by the coronavirus pandemic.
In its latest report, which also forecast growth trajectory for the region to resume at a moderate average pace of 3 percent, and the global economy at 4 percent in 2021 to 22, it said persistent outbreaks of the ravaging pandemic in many countries around the world will continue to constrain economic recovery and growth in Sub-Saharan Africa.
The report noted that the roll out of the Covid-19 vaccines in the region is expected to trail behind that of advanced economies.
It said, “As a result, living standards are likely to be set back a decade and tens of millions of people in the region could be pushed into extreme poverty cumulatively in 2020-21.
“Risks to the regional outlook are tilted to the downside, and include weaker-than-expected recoveries in key trading partner economies, logistical hurdles that further impede vaccine distribution, and scarring of labor productivity that weakens potential growth and income over the longer term.”
In Nigeria and South Africa, the Bank said output fell sharply last year owing to domestic outbreaks of the pandemic and the countries’ heavy dependence on commodity exports and tourism as well as strict lockdowns that brought their economies to a standstill.
The report expects Nigeria’s growth to restart by 1.1 per cent in 2021 from a contraction of 4.1 per cent the previous year while South Africa is expected to rebound to 3.3 per cent in 2021.
“Activity is nevertheless anticipated to be dampened by low oil prices, OPEC quotas, falling public investment due to weak government revenues, constrained private investment due to firm failures, and subdued foreign investor confidence.” World Bank noted.