Child well-being is inextricably linked to the performance of the macroeconomy and social sector investments. Although not always explicit, there are very clear and powerful channels that need to be understood, monitored and linked to decision-making processes, including economic growth, labour markets, price levels, the fiscal balance and government spending patterns. As the young and fast-growing population in Eastern and Southern Africa explodes from 540 million today to more than a billion in less than 30 years, the stakes for children have never been higher. And this is the main objective of the report: to review recent and projected macroeconomic and social sector investment trends to identify potential threats and opportunities for children so that they prosper during good times and are protected during bad times. The Macroeconomic and Social Investment Outlook for Children in Eastern and Southern Africa 5 of four jobs are in the informal sector where pay is generally insufficient to help workers and their families escape poverty. At the same time, Eastern and Southern Africa boasts one of the highest unemployment rates in the world, which exceeds 20 per cent in many southern African countries and leaves far too many families without income. The situation is worse for young workers. Six million 15-24 year olds will be unable to find a job in 2019, and most of them have already been inflicted by irreversible "wage scars. " At the same time, young workers must continue to compete against 12 million new labour market entrants each year. Third, rising prices are negatively influencing real economic growth, government investment and household welfare. Eastern and Southern Africa currently suffers some of the highest inflation rates in the world, with several countries facing dangerous levels of volatility, including Angola, South Sudan, Zambia and Zimbabwe. In addition to hampering the real output of many economies, rising prices minimize the impact of government budgets, including social transfer values and hence direct support to children. At the household level, inflation erodes disposable income, while food inflation, which runs substantially higher than general inflation across the region, affects the nutritional intake of children, whose well-being is further endangered by other coping mechanisms. Fourth, small revenue bases, continuous budget deficits, high debt and the changing official development assistance landscape limit spending on children's services. In most Eastern and Southern African countries, budgets are constrained by the small size of formal economies, which makes it impossible to adequately finance services for children. As nearly every government is forecast to run a budget deficit in 2019, borrowing continues to swell, with debt repayment increasingly crowding out available funding for social sectors and debt sustainability concerns reverberating across the region. Official development assistance remains an important social sector financing source for most governments, but flows are hea...