African Economies Remain Resilient Despite Multiple Shocks, According to AfDB Report
The latest report from the African Development Bank (AfDB) reveals that African economies are showing resilience in the face of multiple shocks, with a projected average growth rate of 4.0% in 2024-2025, almost a full percentage point higher than the 3.1% estimated last year.
Inflation on the Rise
The average inflation rate in Africa is estimated to have increased by 3 percentage points, from 14% in 2022 to 17% in 2023. The North African region experienced the highest inflation rate, rising from 8.1% to 16.3% in 2023, largely due to geopolitical tensions and price hikes in Egypt.
Growth Prospects Vary Across Regions
The growth prospects for 2024-2025 are heterogeneous across regions and economic groupings in Africa.
North Africa: Growth Rate to Decline
In North Africa, the growth rate is projected to decline, from an estimated 4.1% in 2023 to 3.6% in 2024 and 4.2% in 2025, with a downward revision of 0.3 percentage points for 2024 compared to the January 2024 MEO (Main Economic Outlook) forecasts. Except for Libya and Mauritania, growth has been revised downward for all other countries in the region.
Country-Specific Projections
- Tunisia: Real GDP growth is estimated at only 2.5% for 2024-2025, lower than Algeria (3.8%) and Morocco (3.6%), and significantly lower than Mauritania (4.8%) and Libya (7%). Libya is one of the few countries on the continent to show a strong performance in terms of real GDP growth.