Africas growth rate hit by slowing economies in major markets in 2023 is set to expand again from 2024, according to the World Bank.
Economic growth in Africa is set to slow down from 3.6 in 2022 to 3.1 in 2023 but will bottom out and rise to 3.7 and 3.9 in 2024 and 2025, according to a new World Bank report.
Dubbed Africas Pulse, the World Banks April 2023 economic update attributes the growth deceleration to the slowdown in the global economy, high inflation, and the underperformance of the continents largest economies.
Stubbornly high inflation and low investment growth continue to constrain African economies.
It is expected to accelerate slightly to an average annual rate of 3.0 in 202425.
Economic activity in the subregion excluding Nigeria is set to grow 4.2 in 2023, rising to 5.3 in 202425.
In North Africa, doubledigit food price inflation will weigh on the region, causing growth to slow to 3.0 in 2023 after growing 5.8 in 2022.
Developing oil importers in the region, including Djibouti, Morocco, Egypt and Tunisia, grappled with the double hit of high oil and high food prices both of which they import and grew very little.
The growth acceleration occurred due to strong mining operations particularly increased production of diamonds, copper, and uranium.
Similarly, economic activity accelerated in Mauritius and Mozambique by 8.3 and 4.1, respectively, in 2022.
Growth in Mozambique stemmed from increased coal and aluminium output, thanks to strong global demand, high prices, and the start of liquefied natural gas exports to Europe, while Mauritius benefited from the recovery in tourism.
The report urges African policymakers to restore macroeconomic stability, deepen structural reforms to foster inclusive growth, and implement policies that seize the opportunities available during the transition to lowcarbon economies.
Rapid global decarbonisation will bring significant economic opportunities to Africa.
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