2023-05-24 16:18:50
SHARM EL SHEIKH (Egypt) – The GDP of the African continent should grow by 4% during the current year, a growth which should be consolidated in 2024, with a rate of 4.3%, according to forecasts announced Wednesday by the Bank Development Bank (AfDB).
According to the Bank’s report on the African economic outlook for 2023, released on the occasion of the 58th Annual Meetings of the AfDB, which are being held from May 22 to 26 in Sharm el Sheikh (Egypt), the prospects for economic growth of the continent “remain positive and stable, with a forecast rebound to 4% in 2023 and further consolidation to 4.3% in 2024”.
The report, which focuses on the theme chosen for this edition of the Assemblies, namely “Mobilizing private sector financing for climate and green growth in Africa”, underlines that the continent, with a 3.8% increase in the GDP in 2022, managed to achieve growth above the world average in the same year (3.4%), with an increase in Gross Domestic Product in all but two African countries.
According to AfDB projections, 18 African countries will experience growth rates above 5% in 2023, and the number is expected to increase to 22 in 2024.
“Despite significant headwinds, Africa has shown remarkable resilience in the face of storms of uncertainty, as evidenced by the projected consolidation of economic growth over the medium term. This continued resilience will be underpinned by expected improvements in economic conditions. global economic conditions, fueled by the reopening of China and a downward adjustment in interest rates,” analyzes the report, presented by the chief economist and acting vice-president of the AfDB, Kevin Urama.
But, due to rising global food and energy prices, inflationary pressures have increased in 2022, with double-digit inflation recorded in 18 African economies, which, the AfDB observes, has exerted pressure additional tax on the public budgets of these countries.
Thus, average consumer price inflation in Africa is expected to rise from 14.2% in 2022 to 15.1% in 2023, before falling back to 9.5% in 2024.
According to Mr. Urama, the publication of this report will be followed by the publication of the country reports in July.
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