Addis Ababa — Persisting trade tension between the US and China could shave 0.7% from Africa’s GDP in 2019, a senior official at the African Development Bank (AfDB) said on Friday. Hanan Morsy, director of the AfDB’s macroeconomic policy department, made the prediction on the sidelines of an African Union meeting in Addis Ababa as fresh doubt emerged over prospects for US-China trade-war negotiations. She was speaking after the release of the bank’s African Economic Outlook 2019 report, which said the continent registered growth of 3.5% in 2018, and was expected to grow 4% in 2019. This is higher than most regions of the world but still insufficient to address persistent fiscal and current account deficits and “unsustainable debt”. The ongoing trade battle between the US and China could "have a negative impact of 0.7% of GDP from Africa. This impact will be through lack of trade and investment flows.

“AfDB in particular expects a noticeable impact in the tradeable sectors, inc...

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