This report presents economic performance for the SADC region in 2020. It also presents the outlook for business environment in the region for the same period. In addition, the report presents the economic outlook in the short to medium term for the region; and main factors behind the outlook. Further, it highlights issues to inform policy direction both at national and regional levels.
The report is presented in seven sections. The first section is the introduction followed by highlights on the global economic outlook and economic developments in the region for the year 2020. Section 3 provides the regional economic performance for 2020. Developments with respect to major economic fundamentals in Member States are briefly presented in four followed by the business environment in section five. Section six provides a summary of development in the area of financial inclusion. Finally, section seven concludes by highlighting outlook, issues for policy consideration, risk and recommendations.
Here are some of the facts and figures in summary
Economic growth in the region contracted by 4.8 per cent in 2020 lower than the growth of 2.1 per cent recorded in 2019.
SADC region annual inflation increased to an average of 49.6 per cent in 2020 from 16.4 per cent in 2019, largely due to heightened inflationary pressures in Zimbabwe. The average inflation excluding Zimbabwe averaged 6.4 per cent in 2020.
Fiscal deficit deteriorated from 3.0 per cent of GDP in 2019 to 7.3 per cent of GDP in 2020. Public debt increased from 56.3 per cent of GDP in 2019 to 67.1 per cent of GDP in 2020.
The region’s current account balance as a ratio of GDP widen from an average deficit of 4.2 per cent in 2019 to a deficit averaging 4.7 per cent in 2020.
SADC international reserves increased to 5.9 months of import cover in 2020 from 5.3 month of import cover in 2019 as a result of the subdued demand.
Global growth in 2020 contracted by 3.3 per cent from a growth of 2.9 per cent in 2019, largely driven by the decline in commodity prices, trade policy uncertainty, escalation of trade tensions and rising debt.
