African economies are expected to grow by an average of 3.4% this year, the African Development Bank said, as the continent recovers from its worst contraction in half a century.<\/p>\n\n\n\n
The 54 economies shrank by 2.1% last year, the AfDB said in its 2021 economic outlook report, as the coronavirus crisis disrupted economic activity across the continent.<\/p>\n\n\n\n
\u201cThe continent-wide projected recovery… does not remove the threat of increasing poverty,\u201d the Abidjan-based AfDB said in the report, published on Friday.<\/p>\n\n\n\n
An estimated 39 million Africans are likely to slip into extreme poverty as a result of the COVID-19 pandemic, the bank said, after 30 million were pushed into that bracket last year.<\/p>\n\n\n\n
\u201cPopulations with lower levels of education, few assets, and working in informal jobs are the most affected and must be protected,\u201d it said.<\/p>\n\n\n\n
Governments on the continent boosted their spending last year in an effort to support their economies through the crisis, putting pressure on budgetary balances and debt burdens.<\/p>\n\n\n\n
\u201cThe average debt-to-GDP ratio for Africa is expected to climb by 10 to 15 percentage points in the short to medium term,\u201d the AfDB said.<\/p>\n\n\n\n
The worsening outcomes will be driven by the surge in government spending and the contraction of fiscal revenues caused by the pandemic.<\/p>\n\n\n\n
The AfDB called on the international community to work with policymakers on the continent to help it deal with debt loads that are getting heavier and heavier.<\/p>\n\n\n\n
\u201cAfrica\u2019s debt burden must be prioritised and not ignored,\u201d it said. \u201cThe time for one last debt relief drive for Africa is now.\u201d<\/p>\n\n\n\n
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