Seventeen African economies are projected to grow by more than 5 percent in 2024, potentially rising to 24 by 2025.
East Africa is expected to lead GDP growth on the continent amid global challenges, according to the African Economic Outlook 2024 report by the African Development Bank Group. This region is expected to see the fastest growth, with real GDP growth rising from an estimated 1.5 percent in 2023 to 4.9 percent in 2024 and 5.7 percent in 2025.
The latest report, released at the Bank’s Annual Meetings in Nairobi, shows that 41 African countries are expected to experience stronger growth rates in 2024 compared to 2023.
Describing Africa’s growth potential as “remarkable”, the report emphasizes that the continent will remain the second fastest growing region after emerging Asia through 2024 and 2025. East Africa, the continent’s fastest growing region, will see real GDP growth rise from an estimated 1.5 percent in 2023 to 4.9 percent in 2024 and 5.7 percent in 2025.
Growth in Central Africa is forecast to increase moderately from 4.3 percent in 2023 to 4.1 percent in 2024 and recover strongly to 4.7 percent in 2025. The revised forecast is driven by expectations of stronger growth in Chad and the Democratic Republic of Congo as a result of favorable metal prices.
Growth is forecast to pick up in West Africa, rising from an estimated 3.6 percent in 2023 to 4.2 percent in 2024 and consolidating at 4.4 percent the following year. This is a 0.3 percentage point upgrade from the January MEO 2024 forecasts for 2024, reflecting stronger growth in the region’s major economies (Côte d’Ivoire, Ghana, Nigeria and Senegal).
Growth in North Africa is expected to slow from an estimated 4.1 percent in 2023 to 3.6 percent in 2024 and 4.2 percent in 2025, a downward revision of 0.3 percentage points for 2024 from the January 2024 MEO. Growth is revised downwards for all other countries in the region, except Libya and Mauritania.
Growth in South Africa is expected to increase from an estimated 1.6 percent in 2023 to 2.2 percent in 2024 and 2.7 percent in 2025. The growth rates for 2024 and 2025 show a 0.1 percentage point increase from the January 2024 forecasts, mainly reflecting a 0.7 percentage point increase in South Africa’s projected growth.
Due to South Africa’s larger weight in the region, the upgraded growth forecast offset the combined effect of downward revisions in Angola, Botswana, Lesotho, Zambia and Zimbabwe.
SOURCE:THEEXCHANGE.AFRICA
