Africa's economic growth for 2023-2024 projected to be stable– Akinwumi Adesina

According to a forecast by the African Development Bank Group, over the next two years, Africa's economic development will outperform that of the rest of the globe.

The real Gross Domestic Product of the continent was predicted to grow by an average of 4% in 2023 and 2024, higher than the expected global averages of 2.7% and 3.2%, according to a report titled "Africa's macroeconomic performance and prospects."

Despite confronting considerable challenges brought on by global socio-economic shocks, the analysis demonstrated that all five of the continent's regions remained robust and had a stable prognosis for the medium term.

It also called for strong monetary and fiscal measures supported by structural policy to address possible concerns.

According to the analysis, major hurdles resulting from the COVID-19 shock and Russia's invasion of Ukraine caused the expected average real GDP growth in Africa to decelerate to 3.8% in 2022 from 4.8% in 2021.

The report did, however, issue a warning over the prognosis due to recent global and regional challenges.

The research listed several threats, including rising food and energy costs, tightening international financial conditions, and the ensuing rise in the cost of servicing domestic debt. Threats from both the adverse effects of climate change on the local food supply and the potential for policy changes in nations holding elections in 2023 posed formidable obstacles.

To assist African economies in reducing the dangers that keep mounting, the report urged strong policy efforts at the national, regional, and international levels.

The release of the new report, according to Dr. Akinwumi Adesina, president of the African Development Bank Group, came as African economies were demonstrating their resiliency in the face of considerable headwinds.

He said, “With 54 countries at different stages of growth, different economic structures, and diverse resource endowments, the pass-through effects of global shocks always differ by region and by country.

“Slowing global demand, tighter financial conditions, and disrupted supply chains, therefore, had differentiated impacts on African economies.

“Despite the confluence of multiple shocks, growth across all five African regions was positive in 2022—and the outlook for 2023–24 is projected to be stable.”

The top five performing economies in Africa before COVID-19 were predicted to expand by an average of more than 5.5% in 2023–2024 and restore their place among the world's ten fastest–growing economies.

The percentages are as follows: Rwanda 7.9%, Côte d'Ivoire 7.1%, Benin 6.4%, Ethiopia 6.0%, and Tanzania 5.6%.

The 2023 and 2024 economic forecasts called for growth in other African nations of more than 5.5%.

They are the Democratic Republic of the Congo (anticipated growth of 6.8%), Gambia (growth projected at 6.4%), Mozambique (growth projected at 6.5%), Niger (estimated growth of 9.6%), Senegal (expected growth of 9.4%), and Togo (expected growth of 6.3%).