Question

Consider the Economist Intelligence Unit's forecast update "AfCFTA agreement comes into force after pandemic delays" of the current and future benefits of the recently implemented African Continental Free-Trade Area (AfCFTA) agreement."

In the article, what is the expectation about the timing of total factor productivity benefits from the AfCFTA agreement?

Answer 1

The timing of total factor productivity benefits from the AfCFTA agreement is not mentioned in the provided information, but trade agreements like AfCFTA offer various gains and advantages such as increased trade and knowledge transfer.

Step-by-step explanation:

The expectation about the timing of total factor productivity benefits from the African Continental Free-Trade Area (AfCFTA) agreement is not explicitly mentioned in the provided information. However, the information does highlight the potential gains and advantages of trade agreements like AfCFTA.

These gains include increased trade, availability of a variety of products, greater competition among producers, and the transfer of knowledge and skills through trade. It is important to note that the specific timing of total factor productivity benefits may vary depending on various factors such as the implementation of trade facilitation measures, infrastructure development, and the extent of participation and collaboration among member countries. Given the complexities of measuring these benefits and the recent implementation of AfCFTA amidst global economic challenges, an exact timeline for the realization of these productivity gains is difficult to ascertain without specific forecasts from the cited article.