AFD - Universal Registration Document 2020

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PRESENTATION OF AFD

Activities of the Agence Française de Développement Group in 2020

OUTLOOK FOR 2021 Global activity is expected to grow 5.5% in 2021, supported in particular by the budgetary stimuli announced in the advanced economies and in the United States in particular, following the election of President Biden. But the dynamics of the recovery will be very uneven from country to country, depending in particular on the effective control of the epidemic, the structure of economic activity and its dependence on the sectors most vulnerable to distancing, and the efficiency of the economic policy measures taken in response to the crisis. Differences in the timing of access to vaccination between developing countries and advanced economies, combined with constraints on budgetary and monetary room for manoeuvre could delay

the rebound of the economies where AFD intervenes. Within this group of countries, additional differences are beginning to emerge: China already seems to have regained its pre-Covid real GDP trajectory, while oil-exporting or tourism-dependent countries will be affected in the longer-term. According to the IMF, growth in emerging and developing Asia should rebound to +8.3% in 2021, largely driven by China (+8.1%) and India (+11.5%). In Latin America (+4.1%), the two largest economies, Brazil and Mexico, are expected to grow by +3.6% and +4.3% respectively in 2021. Economic activity in Sub-Saharan Africa is expected to increase more moderately (+3.6%) in 2021, due to the relative weakness of the economic performance of South Africa (+2.8%) and Nigeria (+1.5%).

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2020 UNIVERSAL REGISTRATION DOCUMENT