Economic growth in Central, southern Africa subdued
Economic conditions remain robust in East Africa and are slightly improving in North and West Africa, but growth in Central and southern Africa is largely subdued, a United Nations report on global economic prospects says.
The report, launched regionally in Johannesburg on Wednesday, says rising numbers of people in extreme poverty, elevated public debt and lack of diversification are key medium-term challenges.
Presenting the report, the director of research at economic modelling firm Plus Economics, Dr. Kirsten Thompson, said the UN's 2030 agenda for sustainable development may not be realized if the economic situation globally did not change.
The report says growth in South Africa remains below potential amid weak investment, energy shortages and high unemployment, while Zimbabwe is experiencing a severe crisis characterised by foreign currency shortages, elevated public debt and uncontrolled inflation.
"The recession in Angola is expected to continue amid declining oil output and difficulties in attracting foreign investments," it adds.
Africa's economic outlook faces several downside risks -- agricultural output is highly exposed to weather-related shocks, with potential for dire economic and social consequences.
In addition, political conflicts, social instability and security concerns across the continent could affect the short-term outlook in many countries.
On the external front, a further deterioration in global growth could significantly affect the outlook in Africa through several channels, including reduced demand and commodity prices, lower capital inflows and foreign direct investment, and lower income from remittances and tourism.
"The global economic context painted above and its impact on Sustainable Development Goals-oriented investments fits hand in glove to the South African situation," UN resident coordinator in South Africa Nardos Bekele-Thomas said in remarks accompanying the report.
"Its economy has experienced considerable slowdown over the past 10 to 15 years which has had negative impacts on its ability to make progressive social investments." - Nampa/African News Agency (ANA)
The report, launched regionally in Johannesburg on Wednesday, says rising numbers of people in extreme poverty, elevated public debt and lack of diversification are key medium-term challenges.
Presenting the report, the director of research at economic modelling firm Plus Economics, Dr. Kirsten Thompson, said the UN's 2030 agenda for sustainable development may not be realized if the economic situation globally did not change.
The report says growth in South Africa remains below potential amid weak investment, energy shortages and high unemployment, while Zimbabwe is experiencing a severe crisis characterised by foreign currency shortages, elevated public debt and uncontrolled inflation.
"The recession in Angola is expected to continue amid declining oil output and difficulties in attracting foreign investments," it adds.
Africa's economic outlook faces several downside risks -- agricultural output is highly exposed to weather-related shocks, with potential for dire economic and social consequences.
In addition, political conflicts, social instability and security concerns across the continent could affect the short-term outlook in many countries.
On the external front, a further deterioration in global growth could significantly affect the outlook in Africa through several channels, including reduced demand and commodity prices, lower capital inflows and foreign direct investment, and lower income from remittances and tourism.
"The global economic context painted above and its impact on Sustainable Development Goals-oriented investments fits hand in glove to the South African situation," UN resident coordinator in South Africa Nardos Bekele-Thomas said in remarks accompanying the report.
"Its economy has experienced considerable slowdown over the past 10 to 15 years which has had negative impacts on its ability to make progressive social investments." - Nampa/African News Agency (ANA)
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