Abuja, Feb. 18, 2024: The real Gross Domestic Product (GDP) growth for Africa is expected to average 3.8 per cent and 4.2 per cent in 2024 and 2025 respectively.<\/p>\n\n\n\n
The African Development Bank (AfDB) said this in its latest Macroeconomic Performance and Outlook (MEO) report.<\/p>\n\n\n\n
In a statement issued on the Bank\u2019s website, this is higher than the projected global averages of 2.9 per cent and 3.2 per cent, the report said.<\/p>\n\n\n\n
According to the report, the continent is set to remain the second-fastest-growing region after Asia.<\/p>\n\n\n\n
\u201cThe top 11 African countries projected to experience strong economic performance forecast are Niger (11.2 per cent), Senegal (8.2 per cent), Libya (7.9 per cent) and Rwanda (7.2 per cent)\u201d<\/p>\n\n\n\n
\u201cOthers are Cote d\u2019Ivoire (6.8 per cent), Ethiopia (6.7 per cent), Benin (6.4 per cent), Djibouti (6.2 per cent), Tanzania (6.1 per cent), Togo (6 per cent), and Uganda at 6 per cent\u201d the report stated.<\/p>\n\n\n\n
It quoted Dr Akinwumi Adesina, AfDB\u2019s President, as saying that in spite the challenging global and regional economic environment, 15 African countries had posted output expansions of more than five per cent.<\/p>\n\n\n\n
Adesina therefore called for larger pools of financing and several policy interventions to boost Africa\u2019s growth further.<\/p>\n\n\n\n
The Africa\u2019s Macroeconomic Performance and Outlook is a biannual publication released in the first and third quarters of each year.<\/p>\n\n\n\n
It complements the existing African Economic Outlook (AEO), which focuses on key emerging policy issues relevant to the continent\u2019s development.<\/p>\n\n\n\n
The MEO report provides an up-to-date evidence-based assessment of the continent\u2019s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.<\/p>\n\n\n\n
Adesina said the latest report called for cautious optimism given the challenges posed by global and regional risks.<\/p>\n\n\n\n
He listed the risks to include rising geopolitical tensions, increased regional conflicts, and political instability all of which could disrupt trade and investment flows, and perpetuate inflationary pressures.<\/p>\n\n\n\n
According to Adesina, fiscal deficits have improved, as faster-than-expected and recovery from the pandemic helped shore up revenue.<\/p>\n\n\n\n
\u201cThis has led to a stabilisation of the average fiscal deficit at 4.9 per cent in 2023, like 2022, but significantly less than the 6.9 per cent average fiscal deficit of 2020\u201d<\/p>\n\n\n\n
\u201cThe stabilisation is also due to the fiscal consolidation measures, especially in countries with elevated risks of debt distress.\u201d<\/p>\n\n\n\n
The AfDB boss said that with the global economy mired in uncertainty, the fiscal positions of the African continent would continue to be vulnerable to global shocks.<\/p>\n\n\n\n
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\u201cThe report shows that the medium-term growth outlook for the continent\u2019s five regions is slowly improving, a pointer to the continued resilience of Africa\u2019s economies\u201d<\/p>\n\n\n\n
Presenting key findings of the report, the AfDB\u2019s Chief Economist and Vice President, Prof. Kevin Urama said growth in Africa\u2019s top-performing economies had benefitted from a range of factors.<\/p>\n\n\n\n
Urama said the factors include declining commodity dependence through economic diversification, increasing stra\u00adtegic investment in key growth sectors, rising both public and private consumption, and positive developments in key export markets.<\/p>\n\n\n\n
\u201cAfrica\u2019s economic growth is projected to regain moderate strength as long as the global economy remains resilient, disinflation continues, investment in infrastructure projects remains buoyant, and progress is sustained on debt restructuring and fiscal consolidation,\u201d he said.<\/p>\n\n\n\n
On his part, Amb Albert Muchanga, Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, African Union Commission, said the future of Africa rested on economic integration.<\/p>\n\n\n\n
According to Muchanga, our small economies are not competitive in the global market. Moreover, a healthy internal African trade market can ensure value-added and intra-African production of manufactured goods.<\/p>\n\n\n\n
He said that the MEO forecast, and recommendations would be made available to African heads of state.<\/p>\n\n\n\n
He said the report would be useful when the African Union made its proposals to the G20- an informal gathering of the world\u2019s largest economies to which the Union was admitted in 2023.<\/p>\n\n\n\n
\u201cThe improved growth figure for 2024 reflects concerted efforts by the continent\u2019s policymakers to drive economic diversification strategies focused on increased investment in key growth sectors.<\/p>\n\n\n\n
\u201cAnd the implementation of domestic policies aimed at consolidating fiscal positions and reversing the increase in the cost of living and boosting private consumption,\u2019\u2019 Muchanga said.<\/p>\n\n\n\n
Also speaking, Zimbabwe\u2019s Minister of Finance and Economic Development, Prof Mthuli Ncube described the report as being \u201con point\u201d and consistent with the reality in his country.<\/p>\n\n\n\n
Ncube said it was useful for economic planning across Africa and urged AfDB to continue its thought leadership to help policymakers continue to build resilience to withstand shocks and drive growth.<\/p>\n\n\n\n
He said: \u201cZimbabwe expects slower growth due to climate shocks in the region. Southern African countries depend on agriculture for economic growth, so climate-proofing agriculture is key.<\/p>\n\n\n\n
\u201cWe are in talks with creditors to restructure its debt, which is slowing economic growth. Internally, the country will focus on economic and governance reforms and reforms around property rights to increase agricultural production.\u201d<\/p>\n\n\n\n
Meanwhile, Prof. Jeffrey Sachs, Director, Center for Sustainable Development, Columbia University said up to 41 countries across the continent would in 2024, achieve an economic growth rate of 3.8 per cent.<\/p>\n\n\n\n
Sachs, said in 13 of them, growth would be more than one percentage point higher than in 2023.<\/p>\n\n\n\n
The Director said that long-term affordable financing must be part of Africa\u2019s strategy to achieve growth of seven per cent or more per year.<\/p>\n\n\n\n
He warned that Africa was paying a very high-risk premium for debt financing, and called for this point to be made to the G20.<\/p>\n\n\n\n
\u201cLong-term development cannot be based on short-term loans. Loans to Africa should be at least 25 years or longer.<\/p>\n\n\n\n
\u201cShort-term borrowing is dangerous for long-term development. Africa must act as one, in scale,\u201d he said.<\/p>\n\n\n\n
Sachs, who is also the UN Secretary-General Ant\u00f3nio Guterres\u2019 Advocate for Sustainable Development Goals also called for a much larger AfDB, better resourced to meet Africa\u2019s financing needs.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"
Abuja, Feb. 18, 2024: The real Gross Domestic Product (GDP) growth for Africa is expected to average 3.8 per cent and 4.2 per cent in 2024 and 2025 respectively. The African Development Bank (AfDB) said this in its latest Macroeconomic Performance and Outlook (MEO) report. In a statement issued on the Bank\u2019s website, this is […]<\/p>\n","protected":false},"author":2,"featured_media":3613,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[949,241],"tags":[],"class_list":["post-55711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-foreign","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"yoast_head":"\n