JUBA, May 3 (Xinhua) -- Central bank chiefs from the East African Community (EAC) said on Friday that ongoing conflicts and the effects of climate change in the region have dampened the economic outlook of member states despite the strong economic performance in 2023.
The central bank governors, who met in the South Sudanese capital of Juba for a week-long meeting, said the EAC economies recorded GDP growth rates ranging from 2.8 percent to 8.1 percent in 2023.
They noted that this performance was supported by strong growth in key sectors and the continued implementation of policies and reforms aimed at improving private and public investment in most countries.
"Nevertheless, the region still faces unfavorable global financial conditions, negative spill-overs from geopolitical conflicts, and the impact of climate change that continue to weigh on the economic performance of East African countries," the governors said in a communique issued during the 27th Ordinary Meeting of EAC Monetary Affairs Committee (MAC) in Juba.
The meeting was attended by the governors of the central banks of South Sudan, Kenya, Tanzania, and Burundi, as well as representatives of the central banks of Uganda and Rwanda.
The meeting took place against a backdrop of an improving global economic outlook, persistently high central bank policy rates in some advanced economies due to sticky inflation, continued exchange rate pressures, partly driven by a stronger U.S. dollar, the adverse effects of climate change, and vulnerabilities arising from ongoing geopolitical tensions.
The central bank chiefs noted that EAC economies are projected to continue improving, with economic growth expected to be higher than the global and sub-Saharan Africa growth rates.
"This robust performance is expected to be driven by strong performance in most sectors, supported by sustained public investment, improved export performance as well as measures to support private sector investment," the communique said. ■
