African Economic Outlook 2019: Africa growth prospects remain steady, industry should lead growth

Africa’s general economic performance continues to recover and GDP growth is projected to accelerate to 4.0 percent in 2019 and 4.1 percent in 2020. But improved macroeconomic and employment outcomes require industry to lead growth, according to the 2019 African Economic Outlook report, launched on January 17 by the African Development Bank.

Published annually since 2003, the African Development Bank’s flagship report provides headline numbers on Africa’s economic performance and outlook.

The 2019 report focuses on three key areas – Africa’s macroeconomic performance and prospects; Jobs, growth, and firm dynamism and Integration for Africa’s economic prosperity.

At the current rate of labor force growth, Africa needs to create about 12 million new jobs every year to prevent unemployment from rising. The report states that a “concerted industrialization effort that builds on countries’ comparative advantage,” is required.

At the core of African integration, the African Economic Outlook suggests that “a borderless Africa” is one of the key foundations of a competitive continental market that could serve as a global business center.”

Significantly, the report identifies five key trade policy actions that could potentially bring Africa’s total gains to 4.5 percent of its GDP, or U$134 billion a year:

• eliminating all applied bilateral tariffs in Africa;
• keeping rules of origin simple, flexible, and transparent;
• removing all nontariff barriers on goods and services;
• implementing the World Trade Organization’s Trade Facilitation Agreement to reduce cross border time and transaction costs tied to nontariff measures and ;
• negotiating with other developing countries to reduce their tariffs and nontariff barriers, by 50%.

Read and download the African Economic Outlook

Original source: AfDB
Published on 17 January 2019