African Economic Growth Expected to Accelerate, but Challenges Remain
A recent report by the African Development Bank (AfDB) anticipates an acceleration of real African GDP growth, reaching 4.1% in 2025 and 4.4% in 2026. This growth is driven by economic reforms, a decrease in inflation, and improvements in budget management and debt management.
However, the AfDB highlights that this growth remains insufficient to significantly reduce poverty, with a required threshold of 7%. The continent continues to face major challenges, including geopolitical tensions, structural weaknesses, climate disasters, and prolonged conflicts.
Despite still-present inflation, its average rate is expected to decrease from 18.6% in 2024 to 12.6% in 2025-2026, thanks to stricter monetary policies. Budget deficits, which are expected to widen to 4.6% of GDP in 2024, should decrease to 4.1% by 2025-2026.
Finally, Africa, the second-fastest-growing region after Asia, will boast 12 of the 20 most dynamic economies globally in 2025, with 24 countries posting growth rates above 5%.
