Recovery in real GDP of the Central African economies

The Central African Economic Outlook 2021 Report of the African Development Bank (AfDB) was recently published, in which it is announced that the growth of the real gross domestic product (GDP) of the African economies is expected to recover to 3 , 3% on average in 2021.

Some key factors expected to contribute to this recovery are the success of containment measures for the pandemic and the reactivation of the global economy.

The report talks about some ways to promote this recovery, such as “strengthening fiscal security to cushion a greater mobilization of aid or internal resources”, in addition to improving governance so that the measures are aimed at the populations that need it most. Obviously, the risks derived from the appearance of new variants of COVID-19 are also still present. Therefore, other factors that should be taken into account is to strengthen the deployment of vaccination campaigns.

The report compiles some of the factors that have most affected the Central African region, giving special prominence to the COVID crisis. This report indicates that the current pandemic will have more long-term repercussions on human capital, for which the CEMAC countries, among others, have adopted stimulus measures equivalent to several percentage points of GDP, combining tax cuts along with injections. of cash and spending on public health and the social sector. Therefore, and despite the fact that the risk continues to be present, the regional outlook is favorable towards a prosperous recovery after COVID-19.

Finally, the report concludes, regional policies must focus especially on measures aimed at reducing poverty and promoting inclusive growth to curb this global crisis.