While the Covid-19 pandemic may have pushed down East Africa’s growth projection for 2020 to 1.2%, it still outstrips other African regions and is forecast to rebound to 3.7% in 2021, according to the African Development Bank’s ‘East Africa Regional Economic Outlook 2020’.
The projection assumes that the virus will be contained by the third quarter of this year.
Prior to the Covid-19 pandemic, the region’s economic growth was projected at more than 5%, well above continent’s average of 3.3% and global average of 2.9%.
However, Covid-19-induced shocks and a locust invasion have contributed to job losses, increased humanitarian needs and will aggravate poverty and income inequality, according to the report.
In the worse-case scenario, in which the pandemic persists until the end of 2020, growth is projected at 0.2%, still above Africa’s predicted average of -1.7% and -3.4% under the two scenarios.
