This archive report was first published on 29 October 2021.
Nairobi, Kenya, October 28, 2021 - The African Development Bank has projected a significant economic recovery for East Africa, with growth expected to reach 4.1% in 2021, up from 0.4% in 2020.
According to the bank's East Africa Economic Outlook 2021, the region's economic growth is expected to further improve to 4.9% in 2022 and 5.6% in 2023, driven by sustained public spending on infrastructure, improved performance of the agricultural sector, and increased regional economic integration.
The bank attributed the slowdown in 2020 to COVID-19 containment measures, including lockdowns, curfews, and reduced external demand for exports of raw materials and lower tourism inflows.
"Shocks like floods and desert locust invasions affected the performance of the agriculture sector. Contraction of economic activity hit businesses and livelihoods hard, increasing poverty and income inequality," the bank said.
However, Nnenna Nwabufo, the Bank's Director-General for East Africa, noted that the region developed resilience over the period through higher economic diversification and swift policy responses initiated by governments to counter the impact of the pandemic.
A mix of policy interventions is needed to accelerate East Africa's economic recovery and build post-COVID-19 resilience, including scaling up vaccination, designing and implementing economic stimulus packages, and stabilizing public debt by dealing with debt related to state enterprises, among others," the Director-General pointed out.
