In its most recent Macroeconomic Performance and Outlook (MEO), the African Development Bank (AfDB) group predicted that eleven of the world’s twenty fastest-growing economies would be located in Africa in 2024.
In 2024 and 2025, respectively, real gross domestic product (GDP) growth is predicted to average 3.8% and 4.2% on the continent. According to the research, this is greater than the estimated global averages of 2.9% and 3.2%.
After Asia, the continent is expected to continue increasing at the second-fastest rate. Following Nigeria (11.2%), Senegal (8.2%), Libya (7.9%), Rwanda (7.2%), Cote d’Ivoire (6.8%), and Ethiopia (6.7%) are the top 11 African nations expected to see robust economic growth; the remaining nations are Benin (6.4%), Djibouti (6.2%), Tanzania (6.1%), Togo (6%), and Uganda (6%).
Dr. Akinwumi Adesina, Group President of the Bank, stated, “15 African countries have posted output expansions of more than five percent despite the challenging global and regional economic environment.” He called for larger pools of financing and several policy interventions to further boost Africa’s growth.
The African Economic Outlook (AEO), which focuses on important emergent policy issues pertinent to the continent’s growth, is supplemented by Africa’s Macroeconomics Performance and Outlook, a biannual publication produced in the first and third quarters of each year.
Amidst dynamic global economic trends, the MEO report offers an up-to-date, evidence-based evaluation of the continent’s recent macroeconomic performance and short-to-medium-term forecast.
The most recent reports advise cautious optimism in light of the difficulties presented by regional and global dangers. These risks include political instability, escalating geopolitical tensions, and an increase in regional wars; all of these could impede trade and investment flows and exacerbate inflationary pressures.
Adesina emphasized that because of the faster-than-anticipated recovery from the epidemic, revenue has been bolstered and budgetary deficits have improved. He went on to say: “As a result, the average budget deficit in 2023 has stabilized at 4.9%, similar to that in 2022, but far lower than that of 6.9% in 2020. The fiscal consolidation measures, particularly in nations with higher risks of debt crises, are also responsible for the stabilization.”
He issued a warning, saying that as long as the world economy remains unstable, the financial standing of the African continent will remain susceptible to shocks from around the world.
According to the report, the medium-term growth forecast for each of the five areas of the continent is gradually improving, which is a sign of Africa’s economy’s ongoing resilience.
Prof. Kevin Urama, Chief Economist and Vice President of the African Development Bank, presented the report’s principal findings: “Growth in Africa’s top-performing economies has benefited from a range of factors, including declining commodity defense through economic diversification, increasing strategic investment in key growth sectors and rising both public and private consumption, as well as positive developments in key export markets.”
