Macroeconomic and social developments in eastern Africa: changing gears? Catalysing economic and social recovery

Abstract

This report focuses principally on three macroeconomic economic challenges for Eastern Africa: (i) the high debt burden, (ii) the inflationary pressures, and (iii) insufficiently high growth rates. We argue that resolving these challenges are key issues for the region to achieve both national and international development goals. The report also discusses the dynamics of Eastern Africa trade, and argues that priming regional trade, in the context of AfCFTA implementation, will play an important role in creating a stronger regional economy. Finally, the report provides a review of performance towards attaining the 2030 SDG goals – noting that the region is seriously lagging behind, particularly in meeting the targets of economic development. Eastern Africa has shown a remarkable ability to withstand the adverse effects of the global economic crises in recent years, according to international and regional benchmarks.