Demonstrating “remarkable resilience” in the face of the global backdrop, the African Development Bank (AfDb) expects 18 countries on the continent to see their economies grow by more than 5%, with the outlook for the continent at 4%, according to estimates presented yesterday in the document “Economic Perspectives for Africa”, during the annual meetings of the Group which will take place until Friday in Sharm el Sheikh, Egypt.
“Our projections show that 18 African countries will have gross domestic product (GDP) growth rates above 5% in 2023, a number that is expected to rise to 22 in 2024″, reads the document, presented by governors and economists of the bank, listing among the countries concerned Mozambique, with a projection of 6.6%, and Cape Verde, with 6%, but also Guinea-Bissau, with 4.9%, Angola (3.7% ) and Sao Tome and Principe (1.8%). This recovery in African economic growth comes after real GDP evolution estimated at 3.8% in 2022, down from 4.8% in 2021, “due to the multiple and dynamic shocks that have weighed on the growth momentum of the Africa”. Despite this, GDP growth in 2022 is higher than the global average of 3.4% and all but two African countries have recorded positive growth rates, the bank’s economists say.
This continued resilience, the institution believes, will be bolstered by expected improvements in the global economy, fueled by China’s reopening and a downward adjustment in interest rates, as monetary policy tightening on inflation begins to take effect. fruits.
Growth will depend on the economic characteristics of each country, with the increase in oil exports suggesting that producing countries will benefit from the prices of this raw material which, despite the recent decline, remain high. Non-resource-intensive economies will instead benefit from their more diversified economic structures, the AfDb points out.
Among the various risks to economic performance facing Africa, the AfDB externally highlights the tightening of global financial conditions and the appreciation of the US dollar, which “exacerbates debt service costs and may increase the risk of debt”, and the extent of the Russian invasion of Ukraine, while internally, he underlines the situation of food insecurity and cost of living on the continent, as well as climate change, which “continue to threaten lives, livelihoods and economic activities”. [Da Redazione InfoAfrica]
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Read our issue on the latest economic outlook for Africa: https://www.africaeaffari.it/rivista/2023-ci-sara-ancora-da-ballare