Africa Urged to Increase Development Spending to Boost Economic Recovery

1309

Addis Ababa (ENA) February 5/2023 The Economic Commission for Africa (ECA) has urged governments in Africa to increase development spending to stimulate fast and sustained recovery.

Launching the World Economic Situation and Prospects 2023 (WESP) report in Addis Ababa this week, Adam Elhiraika, Director of the Macroeconomics and Governance Division (MGD) of the ECA, said African countries have been affected by multiple crises and need to increase spending for a fast recovery.

“Africa is confronted with weaker external demand and elevated energy and food prices in addition to rapidly increasing borrowing costs and adverse world events,” Elhiraika said.

The findings of the WESP report indicated that growth in Africa is projected to slow down to 3.8 percent in 2022 from a projected 4.1 percent at the beginning of 2022.

Elhiraika said the world continues to be confronted by multiple, inter-connected crises amid a slow recovery from the impact of the COVID-19 pandemic.

The WESP report underscores the need for supportive and accommodative fiscal measures to lift growth and accelerate progress towards the SDGs.

The report also emphasizes the need for governments to take a strategic approach in redirecting public expenditure towards sectors with high fiscal multipliers and better targeting vulnerable groups, Elhiraika said.

The WESP is an annual flagship publication produced by the UN Department of Economic and Social Affairs (DESA) in collaboration with the United Nations Conference on Trade and Development (UNCTAD) and the five United Nations Regional Commissions.

Ethiopian News Agency
2023