Africa expects to grow rapidly in the coming years

Africa It will outpace the rest of the world in economic growth over the next two years, with real GDP averaging four percent in 2023 and 2024, according to a report released Thursday, January 19 by the African Development Bank (AfDB in English).

Akinwumi AdesinaSaid the head of the bank “Despite a confluence of multiple shocks, growth in all five African regions was positive in 2022, and the outlook for 2023 and 2024 is expected to be stable.”

Among the factors affecting the continent’s economy – on the other hand ravaged by structural poverty and armed conflict – Adesina cited the slowdown in global demand, tighter financial conditions and the disruption of supply chains in the third year of the pandemic. 19.

However, the estimated growth of 4 percent exceeds the projected global averages for 2023 and 2024 of 2.7 and 3.2 percent, respectively.

the report “Africa’s Macroeconomic Performance and Prospects” It shows that average GDP growth slowed to 3.8% in 2022, from 4.8% in 2021, amid significant challenges following the impact of Covid and the Russian invasion of Ukraine.

But he stresses that despite the slowdown, Fifty-three of the 54 countries in Africa recorded positive growth The five sub-regions of the continent remain resilient, with a stable outlook over the medium term.

Some of its economies must be among the fastest growing in the world in the biennium that begins, as it is From Rwanda (7.9%), Ivory Coast (7.1), Benin (6.4), Ethiopia (6.0), and Tanzania (5.6%).

in the sub-region of Central Africa, Driven by favorable commodity prices, it is estimated that growth was the fastest on the continent at 4.7%, compared to 3.6% in 2021.

there was South Africa Whereas, growth slowed further, to 2.5% in 2022 from 4.3% in 2021. This slowdown reflects moderate growth in South Africaas high interest rates, weak domestic demand and continued power outages affected its economy.

in West Africa Growth is estimated to slow to 3.6% in 2022 from 4.4% in 2021. This reflects a slowdown in Ivory Coast and Nigeriathe two largest economies in the region.

Nigeria’s growth in 2023, while affected by the virus, insecurity and weak oil production – despite high international crude oil prices – could benefit from the ongoing efforts to restore security to the volatile oil-producing region.

for him North Africa It is estimated that growth fell 1.1 percentage points to 4.3% in 2022, from 5.4% in 2021, due to a sharp downturn in Libya and drought in Morocco.

Growth is expected to stabilize at 4.3% in 2023, supported by an expected strong recovery in the two countries and sustained growth in other areas of the subregion.

Finally, it is estimated that East of Africa Growth eased to 4.2% in 2022 from 5.1% in 2021. However, it is expected to recover to the pre-pandemic average, above 5.0%, in 2023 and 2024.

Although the production structure of East Africa is relatively diverse, the countries of the sub-region are largely net importers of commodities. Therefore, it bears the brunt of rising global prices, in addition to the recurrence of climate crises – with droughts and floods noted in different regions in recent years – and insecurity, especially in the Horn of Africa.

“We will see a real acceleration in Africa’s sustainable development to make it the fastest growing part of the global economy. Africa is the place to invest.”: Jeffrey Sachs.

The report sends a note of caution about the outlook underlying current global and regional risks, including skyrocketing food and energy prices, tightening global financial conditions, and associated rising utility costs and domestic debt.

Climate change With its detrimental impact on domestic food supplies and the potential risk of reversing policies in countries that hold elections in 2023, it poses equally challenging threats.

The report calls for bold policy action at the national, regional and global levels to help African economies mitigate mounting risks.

prominent economist Jeffrey Sachs, Director of the Center for Sustainable Development at Columbia University in the United States. He praised the report of the African Development Bank “It shows that Africa can grow and will consistently achieve growth of seven percent or more annually for decades to come.”

“Based on the resilience we see in this report, we will see a real acceleration in the sustainable development of Africa to make it the fastest growing part of the global economy. Africa is the place to invest,” Sachs concluded.

Source: Inter Press Service Agency