Africa's Economy Expected to Grow 4.2% in 2025, According to Brookings Institution
Africa could experience an economic growth rate of 4.2% in 2025, marking a significant acceleration compared to the 3.1% estimated by the African Development Bank for 2023. This growth, driven by increased investments in infrastructure, economic reforms, and rapid urbanization, could also benefit from opportunities offered by the African Continental Free Trade Area (AfCFTA) and a rapidly expanding young population.
However, major risks persist. External debt remains a concern, with nearly half of African countries in distress or at high risk, while extreme climate conditions continue to threaten food and agricultural security.
These forecasts align with those of Moody's and the World Bank, which anticipate growth rates of 4.2% and 4%, respectively, in 2025. Nevertheless, high financing costs and global economic uncertainties could limit this potential. The continuation of reforms, rigorous debt management, and increased resilience to climate shocks will be essential to turn these forecasts into reality and consolidate the continent's economic recovery.
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