The economy of East Africa has recorded a robust economic recovery in 2021, but most countries in the region are yet to achieve their pre-Covid growth levels, according to initial findings from a report by the African Development Bank (AfDB).
While the comprehensive report will be released Friday, initial projections show that the region’s GDP growth will moderate at 4% in 2022 before recovering to 4.7% in 2023, buoyed by the reopening of the economies.
The projected strong growth, according to the AfDB is not homogenous across the region, with top performers being Ethiopia, Kenya, Rwanda, Seychelles, Tanzania, and Uganda.
However, the Russia/Ukraine war, which has increased global food and energy prices, could further slow the economic recovery.
The risks of debt distress, widening fiscal and current account deficits, and limited economic diversification persist.
The document discusses several policy interventions needed to boost East Africa’s post-Covid-19 recovery and build resilience against emerging vulnerabilities.
It provides short, medium, and long-term policy options for supporting climate resilience and a just energy transition.
The African Development Bank’s East Africa Regional Economic Outlook 2022 reviews the economic performance of 13 East African countries over the past year with short-to medium-term projections.
The countries in question are Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, South Sudan, Sudan, Tanzania, and Uganda.
CU/as/APA