The African Development Bank (AfDB) Group has projected that Africa is on track to become the second-fastest growing region in the world, following Asia. In its latest Macroeconomic Performance and Outlook (MEO) report, the Bank forecasts that the continent will account for 11 of the world’s 20 fastest-growing economies in 2024. Africa’s real gross domestic product (GDP) growth is expected to average 3.8% in 2024 and rise to 4.2% in 2025, significantly outpacing global averages.
Despite global and regional challenges, 15 African countries have achieved economic growth of over 5%, according to Akinwumi Adesina, President of the African Development Bank. He emphasized the need for increased financing and policy reforms to further accelerate growth across the continent.
The MEO report, released biannually, provides insights into Africa’s recent macroeconomic performance and short- to medium-term outlook. The report warns of risks such as geopolitical tensions, regional conflicts, and political instability that could disrupt trade and investment. However, fiscal deficits have stabilized, with the average remaining at 4.9% in 2023, the same as in 2022, down from 6.9% in 2020.
African Development Bank Chief Economist Kevin Urama highlighted that Africa’s top-performing economies are benefiting from diversification, strategic investments, and strong export markets. He added that Africa’s growth prospects will continue to strengthen if global economic stability, infrastructure investment, and fiscal reforms are sustained.
Credit: TechEconomy (Text Excluding Headline)
