Africa-Press – Liberia. Sub-Saharan Africa’s economy is projected to rebound in 2024, according to the World Bank’s latest Africa’s Pulse report. However, the recovery is fragile due to several factors, including global economic uncertainty, debt burdens, and ongoing conflicts.
The report forecasts growth to rise from a low of 2.6% in 2023 to 3.4% in 2024 and 3.8% in 2025. While this is positive news, inflation remains high compared to pre-pandemic levels, and public debt continues to be a concern for many countries.
A crucial takeaway from the report is that growth alone isn’t enough to significantly reduce poverty in Sub-Saharan Africa. Deep-rooted inequality is a major obstacle. Here’s what the report highlights:
Growth Impact: Economic growth in the region translates less effectively into poverty reduction compared to other parts of the world.
Structural Inequality: Factors like limited access to education, healthcare, and markets limit people’s ability to improve their lives.
Fiscal Policy Limitations: Government spending alone cannot solve poverty due to budget constraints.
The World Bank emphasizes the need for transformative policies to tackle inequality and ensure long-term growth:
Macroeconomic Stability: Restoring sound economic management is essential.
Intergenerational Mobility: Policies should promote opportunities for future generations to succeed.
Market Access: Removing barriers that hinder access to markets for all is crucial.
Fair Fiscal Policy: Taxes and subsidies must be designed to avoid disproportionately burdening the poor.
The report underscores the need for African governments to build resilience against future shocks. This includes addressing external financing limitations and geopolitical instability that threaten food security for millions.
By tackling inequality and implementing the recommended policies, Sub-Saharan Africa can achieve stronger and more equitable economic growth, paving the way for a more prosperous future for all its citizens.
Source: Sierraloaded
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