The African Development Bank (AfDB) has revised downwards its growth forecasts for Africa in 2023 and 2024. According to a report entitled “Africa’s Macroeconomic Performance and Outlook 2023”, this revision is explained by several factors , including ongoing geopolitical tensions, weak global growth and high interest rates.
This drop in growth forecasts affects 33 countries on the continent and all regions. In Central Africa, growth is expected to fall from 5.3% in 2022 to 4.1% in 2023, mainly due to persistent security and political challenges in countries such as Chad, the Central African Republic and the Democratic Republic of Congo.
In East Africa, forecast growth for 2023 was revised down to 3.4% due to the conflict in Sudan and growing debt vulnerabilities in Ethiopia and Kenya. In North Africa, growth is expected to fall from 4.7% in 2022 to 4% in 2023, due to currency devaluations in Egypt and high inflation in Tunisia and Algeria.
In Southern Africa, growth remains disappointing, with a projection of only 1.6% for 2023, due in particular to electricity problems in South Africa, the region’s largest economy. Finally, in West Africa, forecast real GDP growth is expected to fall to 2.8% due to fuel subsidy reforms in Nigeria, debt problems in Ghana and the impact of terrorism on the sector agricultural in the Sahel countries.
Despite these downward revisions, the AfDB emphasizes that growth forecast for Africa remains higher than the world average and that of other regions, with the exception of Asia. This shows the continent’s economic resilience, although persistent challenges are hampering its growth.
This revision of growth forecasts also highlights the importance for African governments to put in place sound economic policies and structural reforms to stimulate growth, attract investment and create jobs. It is also essential to strengthen political stability and promote peace and security in the region to foster an environment conducive to economic development.
In conclusion, the downward revision of growth forecasts for Africa in 2023 and 2024 highlights the challenges facing the continent. However, it is important to note that Africa remains resilient and has strong growth potential. African governments must continue to work collaboratively with international partners to overcome obstacles and create a prosperous economic future for the continent.