Africa: Economic growth decelerates before full recovery from pandemic-led contraction.

Economic growth in Africa is forecast to slow down this year while the level of economic activities remains below the pre-pandemic level, according to the United Nations World Economic Situation and Prospects (WESP) 2023, which was launched today.

A series of severe and mutually reinforcing shocks - the COVID-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency - battered the world economy in 2022. Against this backdrop, world output growth is projected to decelerate from an estimated 3.0 per cent in 2022 to 1.9 per cent in 2023, marking one of the lowest growth rates in recent decades.

The report presents a gloomy and uncertain economic outlook for the near term. Global growth is forecast to moderately pick up to 2.7 per cent in 2024 as some of the headwinds will begin to subside. However, this is highly dependent on the pace and sequence of further monetary tightening, the course and consequences of the war in Ukraine, and the possibility of further supply-chain disruptions.

The tepid global economic prospects also threaten the achievement of the the 17 Sustainable Development Goals (SDGs), whose mid-point review lies ahead at the 2023 SDG Summit in September.

'This is not the time for short-term thinking or knee-jerk fiscal austerity that exacerbates inequality, increases suffering and could put the SDGs farther out of reach. These unprecedented times demand unprecedented action,' said Antonio Guterres, United Nations Secretary-General.

'This action includes a transformative SDG stimulus package, generated through the collective and concerted efforts of all stakeholders,' he added.

Growth is forecast to slow down this year while the level of economic activities remains below the pre-pandemic level.

Africa facing a confluence of shocks

Economic growth of Africa is estimated to weaken to 3.8 per cent in 2023 from 4.1 per cent in 2022 due to subdued investment and falling exports. As for sub-regional trends in 2023, growth is expected to edge up in West Africa, stabilize in Central and East Africa, and to decelerate in North and Southern Africa.

This is not the time for short-term thinking or knee-jerk fiscal austerity that exacerbates inequality, increases suffering and could put the SDGs farther out of reach. These unprecedented times demand unprecedented action.This action includes a transformative SDG stimulus package, generated through the collective...