(Ecofin Agency) - Economic growth in the African region behind the Sahara should reach 3.4% this year, according to estimates in the World Bank's latest Africa's Pulse report, published on April 8.

Despite the predicted rebound, the institution warns of persistent inequalities and the need for transformative policies to encourage stronger and more equitable growth across the region. According to the World Bank, the anticipated economic recovery will be driven by increased private consumption and a decline in inflation. However, the outlook remains vulnerable due to uncertain global conditions, rising debt service costs, frequent natural disasters, and escalating conflicts. The report also emphasizes that although growth is expected to recover this year, it remains below the average of the previous decade (2000-2014) and is insufficient to effectively reduce poverty in the region.

The report highlights a decrease in external resources available to African governments, rendering fiscal situations more susceptible to global economic disruptions. Consequently, inequalities continue to impede access to basic services and economic opportunities for the most disadvantaged populations. The 2023 Global Multidimensional Poverty Index (MPI) released in July by the United Nations Development Programme (UNDP) indicates that nearly five out of six impoverished individuals reside in Sub-Saharan Africa or South Asia. In Africa, efforts to reverse the poverty trend in recent years have been slowed by the adverse effects of the COVID-19 crisis and the war in Ukraine.

“Inequality in Africa is largely due to the circumstances in which a child is born and accentuated later in life by obstacles to participating productively in markets and regressive fiscal policies. Identifying and better addressing these structural constraints across the economy offers a road map for a more prosperous future,” said Gabriela Inchauste, the World Bank's Lead Economist for Poverty and Equity and co-author of an upcoming report on combating inequalities in Africa.

To promote stronger and more equitable growth, the World Bank advises governments to implement several policy measures, including restoring macroeconomic stability, promoting intergenerational mobility, and adopting fiscal policies that do not disadvantage the poorest.