Economic Report on Africa 2023: Building Africa’s Resilience to Global Economic Shocks

Abstract

The theme of the 2023 Economic Report on Africa is “Building Africa’s Resilience to Global Economic Shocks.” The report focuses on the impact of multiple and recurring global shocks on African economies. It examines how these shocks impede Africa’s prospects of reaching the targets set in the Sustainable Development Goals (SDGs), how to achieve inclusive economic transformation and how to build resilience. The analytical and conceptual framework used in the report outlines a typology based on the magnitude of the shocks and on the resilience or preparedness of economies to withstand and buffer the shocks and identify pathways for sustainable recovery. Shocks of various magnitude, duration and recurrence have shaped economic performance in the last several decades. They have undermined Africa’s aspirations for sustained growth and rapid economic transformation and benefiting from demographic (youth bulge) and geographic (urbanization) trends. They have also had scarring effects that make it difficult for African economies to recover fully even after a short-lived shock such as the global financial crisis. More important, their damage could morph into other domains such as political instability and conflict, thus undermining recovery, and the resilience to future shocks. The report also emphasizes the opportunities to implement long overdue structural and public finance reforms and to take full advantage of regional initiatives such as the African Continental Free Trade Area to reduce Africa’s exposure to external shocks.