APA-Addis Ababa (Ethiopia) East Africa’s economic growth is projected to rise to 5.1 percent in 2023, up from the 4.4 percent in 2022, the African Development Bank (AfDB) said on Thursday.
“The rebound in the selected East African countries will be driven by the pandemic recovery in the services sector and the performance of exports,” said the annual report, the 2023 East Africa Economic Outlook, which showcases AfDB’s assessment of the region’s macroeconomic performance, medium-term projections and the risks to the growth outlook.
The report examines the region’s growth performance, its drivers and outlook as well as the implications for socioeconomic development, indicating that the East Africa region faces external and domestic downside risks that could affect the positive growth outlook.
“External risks include a global economic slowdown, further commodity price volatility, continuation of the conflict in Ukraine, a slowdown in international trade, tighter global financial conditions, rising debt service costs, and the possible resurgence of COVID-19,” the report said.
According to the report, domestic risks include large gaps in infrastructure, expanded domestic conflicts and political instability, adverse climate change impacts, and a high level of macroeconomic uncertainty.
MG/as/APA