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.
This was disclosed in the African Development Bank’s (AfDB) latest Macroeconomic Performance and Outlook (MEO) report
A statement on the Bank’s website, stated that this is higher than the projected global averages of 2.9 per cent and 3.2 per cent.
The report also states that the continent is set to remain the second-fastest-growing region after Asia.
“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 6 per cent, and Uganda at six per cent” the report said.
The AfDB President Dr Akinwumi Adesina, is quoted as saying
“in spite of the challenging global and regional economic environment, 15 African countries have posted output expansions of more than five per cent.”
Adesina, therefore, called for larger pools of financing and several policy interventions to boost Africa’s growth further.
AfDB’s Macroeconomic Performance and Outlook is a biannual publication released in the first and third quarters of each year.
It complements the existing African Economic Outlook (AEO), which focuses on key emerging policy issues relevant to the continent’s development.
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.
The AfDB President believes latest report calls for cautious optimism given the challenges posed by global and regional risks.
He lists 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.
Dr Adesina stresses that fiscal deficits have improved, faster-than-expected and recovery from the pandemic helped to shore up revenue.
“This has led to a stabilisation of the average fiscal deficit at 4.9 per cent in 2023, like 2022, but significantly less than the 6.9 per cent average fiscal deficit of 2020”
“The stabilisation is also due to the fiscal consolidation measures, especially in countries with elevated risks of debt distress.”
But the AfDB Chief warns that with the global economy mired in uncertainty, the fiscal positions of the African continent would continue to be vulnerable to global shocks.
(C) ControlTV 2024.
