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“Moreover, due to multiple factors, including structural inequality, economic growth reduces poverty in Sub-Saharan Africa less than in other regions.”The report said transformative policies were needed to address deep-rooted inequality, sustain long-term growth, and effectively reduce poverty.The statement quoted Andrew Dabalen, World Bank Chief Economist for Africa, as saying:“Per capita Gross Domestic Product (GDP) growth of one per cent is associated with a reduction in the extreme poverty rate of only about one per cent in the region, compared to 2.5 per cent on average in the rest of the world.“In a context of constrained government budgets, faster poverty reduction will not be achieved through fiscal policy alone.“It needs to be supported by policies that expand the productive capacity of the private sector to create more and better jobs for all segments of society.”The report highlighted that external resources to meet the gross financing needs of African governments were shrinking, and those available were costlier than they were before the pandemic.“Political instability and geopolitical tensions weigh on economic activity and may constrain access to food for an estimated 105 million people at risk of food insecurity due to conflict and climate shocks.“African governments’ fiscal positions remain vulnerable to global economic disruptions, necessitating policy actions to build buffers to prevent or cope with future shocks.“What’s more, inequality in Sub-Saharan Africa remains one of the highest in the world, second only to the Latin America and Caribbean region, as measured by the region’s average Gini coefficient.It stated that access to basic services, such as schooling or healthcare, remained highly unequal in spite of recent improvements.“Disparities also exist in access to markets and income-generating activities, irrespective of people’s skills. Taxes and poorly targeted subsidies may also have an outsized impact on the poor.”The report called for several policy actions to foster stronger and more equitable growth.“These include restoring macro-economic stability, promoting inter-generational mobility, supporting market access, and ensuring that fiscal policies do not overburden the poor.”Home vai de bet:Metro News vai de bet:Business News World Bank Projects African Economies To Grow At 3.4% In 2024 –...