"The African continent has been experiencing an unprecedented economic crisis with major adverse impacts on the continent's long-term development," reads the report released in New York on the Economic Situation and World Outlook, which estimates that last year growth economic growth fell 3.4 percent and that this year it is also expected to advance 3.4 percent on average.
"The confinement needed to control the pandemic, the reduced external demand combined with low raw material prices, the collapse of tourism and the decline in remittances have triggered severe economic disruptions", warn the experts, noting that "despite most countries in Africa have acted quickly to contain the spread of the pandemic, most are severely constrained by a lack of resources needed to support health systems, protect the most vulnerable population and support recovery ".
The crisis aggravated by the pandemic, which has already claimed more than 85,000 deaths and more than three million infected on the continent, "is causing an increase in unemployment, poverty and inequality, which threatens to wipe out the gains in development in recent decades" , regrets UNDESA, warning that financing conditions have become more difficult and public debt levels are posing serious difficulties for African countries, such as Angola, Cape Verde or Mozambique, all with a debt that represents more than 100 percent of GDP .
Africa, they argue, "needs a sustained revival of growth", since last year growth per capita must have returned to the level recorded a decade ago due to the current crisis and the slowdown in growth that has occurred since the end of high prices of raw materials.
"Although a focus on the short term is needed, African countries must nevertheless lay the groundwork for an inclusive and strong development path in the medium term, which implies the creation of decent and inclusive jobs on a large scale", warn UN experts.
To that end, they point out, it is inevitable "to accelerate the implementation of the reform agenda that unlocks growth opportunities and institutional changes to improve transparency and build confidence in the rule of law, as well as political actions in the areas of technological adaptation, climate resilience and domestic revenue mobilization ".
In particular, UNDESA argues that African countries should prioritize "the use and diffusion of digital technologies, supported by an accessible expansion of the universal digital infrastructure" and, on the other hand, harness the potential of the free trade agreement, which can be "a great tool for promoting intra-regional trade, food security and productivity".
Globally, UNDESA estimates a drop in world GDP of around 4.3 percent in 2020 and a recovery to 4.7 percent growth this year.
