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DBCC predicts faster 2021 GDP growth.
The Development Bank of the Central African States (DBCC) has predicted that the Central African region will experience faster economic growth in 2021. This is good news for the region, which has been hit hard by the COVID-19 pandemic and the resulting economic downturn.
According to the DBCC, the Central African region is expected to grow by 3.2% in 2021, up from 2.8% in 2020. This growth is expected to be driven by a rebound in the oil sector, which is a major contributor to the region’s economy. The DBCC also predicts that the non-oil sector will continue to grow, albeit at a slower pace.
The DBCC’s prediction is in line with other forecasts for the region. The International Monetary Fund (IMF) has also predicted that the Central African region will experience faster economic growth in 2021, with a projected growth rate of 3.4%. This is up from the IMF’s previous forecast of 2.8%.
The DBCC’s prediction is based on several factors. First, the global economy is expected to recover in 2021, which will boost demand for oil and other commodities. Second, the rollout of COVID-19 vaccines is expected to help contain the pandemic and allow for a return to normal economic activity. Finally, the DBCC expects that governments in the region will continue to implement policies that support economic growth, such as infrastructure investment and fiscal stimulus.
Despite the positive outlook, there are still risks to the region’s economic recovery. The pandemic is still ongoing, and there is a risk of new variants emerging that could be more contagious or resistant to vaccines. In addition, the region’s economies are heavily dependent on commodity exports, which are subject to price volatility and other external factors.
To mitigate these risks, the DBCC recommends that governments in the region continue to implement policies that support economic diversification and resilience. This could include investing in sectors such as agriculture, manufacturing, and services, as well as improving infrastructure and promoting regional integration.
Overall, the DBCC’s prediction of faster economic growth in 2021 is a positive sign for the Central African region. While there are still risks to the economic recovery, the outlook is improving, and governments in the region have an opportunity to build a more resilient and diversified economy for the future.