AfDB predicts 3.8% economic growth for Africa

The real Gross Domestic Product (GDP) growth for Africa is expected to average 3.8 per cent and 4.2 per cent in 2024 and 2025, the African Development Bank (AfDB) has said.

In its latest Macroeconomic Performance and Outlook (MEO) report, the bank said the growth figure is higher than the projected global averages of 2.9 per cent and 3.2 per cent, putting the continent as the second-fastest-growing region after Asia.

The report said: “The top 11 African countries projected to experience strong economic performance forecast are Niger (11.2 per cent); Senegal (8.2 per cent); Libya (7.9 per cent) and Rwanda (7.2 per cent).

“Others are Cote d’Ivoire (6.8 per cent), Ethiopia (6.7 per cent); Benin 6.4 per cent); Djibouti (6.2 per cent); Tanzania (6.1 per cent); Togo and Uganda (six per cent) respectively.”

AfDB’s President, Dr. Akinwumi Adesina, explained that despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more than five per cent.

Adesina called for larger pools of financing and several policy interventions to boost Africa’s growth further.

The MEO report provides an up-to-date evidence-based assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.

Adesina said the latest report called for cautious optimism given the challenges posed by global and regional risks. He listed the risks to include rising geo-political tensions, increased regional conflicts, and political instability all of which could disrupt trade and investment flows, and perpetuate inflationary pressures.

According to the AfDB boss, fiscal deficits have improved – faster-than-expected – and recovery from the pandemic helped shore up revenue.


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