Sub-Saharan Africa will experience a rise in economic growth for the next two years but it won’t be enough to ease poverty on the continent, a World Bank report published on Monday suggests.
The region’s economy is set to expand 3.4 percent this year and 3.8 percent in 2025 as falling inflation boosts private consumption, up from 2.4 percent in 2023, the World Bank said in its biannual Africa’s Pulse report.
“Growth is set to bounce back in Sub-Saharan Africa but the recovery is still fragile,” the report said. “The pace of economic expansion in the region remains slow and insufficient to have a significant effect on poverty reduction.”
“Per capita GDP growth of 1 percent is associated with poverty reduction of only 1 percent in the region, compared to 2.5 percent in the rest of the world.”
The region’s economies have been hurt by shocks related to the COVID-19 pandemic, the conflict in Ukraine as well as rising global interest rates.
Meanwhile, drought and conflict have compounded the situation.
Extreme poverty remains concentrated in parts of Sub-Saharan Africa, fragile and conflict-affected areas, and rural areas, according to the World Bank.
Story compiled with assistance from Reuters
