Africa’s short-term economic outlook is improving but the continent still faces significant medium-term vulnerabilities, according to the United Nations World Economic Situation and Prospects (WESP) 2019. The report’s outlook for Africa is clouded by risks, while it says substantial structural vulnerabilities on the continent remain unresolved. It says aggregate GDP growth in Africa slowed to 3.2% in 2018, from 3.4% in 2017. It estimates the continent will grow marginally faster at 3.4% in 2019 and 3.7% in 2020 thanks to the rising demand for Africa’s exports, together with robust private consumption and sustained investments in infrastructure. Economic performance and prospects differ widely among the five African sub-regions, reads the report. “East Africa will remain the fastest-growing sub region. GDP growth is projected to accelerate from 6.2% in 2018 to 6.4% in 2019 and to 6.5% in 2020, supported by large infrastructure investments and the expansion of domestic markets. “In southern Africa, economic growth is projected to pick up modestly from 1.2% in 2018 to 2.1% in 2019 and 2.6% in 2020. In South Africa, the sub region’s largest economy, growth will remain subdued amid socio-political challenges, heightened uncertainty in the mining sector, and weatherdependent agriculture. This will continue to weigh on the performance of other economies in the sub region.”
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