Sierra Leone: The World Bank has released the April 2021 edition of the Africa Pulse report which is an analysis of issues shaping Africa’s economic future. This report was produced by the Office of the Chief Economist for the Africa Region.
The Pulse predicts that the COVID-19-induced recession is less severe than earlier anticipated, with economic activity contracting by 2.0% in 2020—the lower end of the forecast range in April 2020—mainly due to slower spread of the virus and lower COVID-19 mortality, strong agricultural growth and faster than expected recovery in commodity prices.
According to the report, Sub-Saharan Africa’s recovery is expected to vary significantly across countries. Growth is projected to rebound to [1.4]% in Nigeria, [3.0]% in South Africa, and 0.9% in Angola. Excluding Nigeria, South Africa, and Angola, activity is projected to expand at a more solid pace in the rest of the region.
Non-resource-intensive countries, such as Côte d’Ivoire and Kenya, and mining-dependent economies, such as Botswana and Guinea, are expected to see robust growth in 2021, driven by a rebound in private consumption and investment as confidence strengthens and exports increase.
After a 1.1% contraction in 2020, real gross domestic product in Western and Central Africa is projected to grow 2.1% in 2021 and 3.0% in 2022. Metals exporters like Sierra Leone and non-resource-rich countries are expected to drive the recovery.
Africa’s Pulse points to a potentially strong and varied recovery in the coming years, if countries deepen reforms that encourage investment, create jobs, and enhance competitiveness.
In 2021, as the region faces a second wave of COVID-19 infections—fueled by new and more transmissible variables and relaxed adherence to basic health protocols— and slow vaccine rollouts, these investments will be especially critical and must be far-reaching.
“Africa’s poorest people, informal sector workers, women, and youth are suffering disproportionately from reduced opportunities and unequal access to safety nets during the crisis,” said Albert Zeufack, Chief Economist for Africa at the World Bank. “As African countries continue to invest to keep their economies afloat and protect the lives and livelihoods of their people, it will be critical to ensure that every segment of the population is included.”
However, the report stated that economic activity in the region is expected to strengthen as countries act to contain new waves of the pandemic and speed up vaccine rollouts. Growth in the region is forecast to rise to between [2.3] and [3.4]% in 2021, depending on the policy measures adopted by countries in the region and the international community.
ZIJ/14/04/2021