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The African Development Bank Group has released its latest Macroeconomic Performance and Outlook report, revealing promising projections for the continent's economic growth in 2024.
According to the report, Africa is set to witness substantial economic expansion, with eleven of its countries anticipated to rank among the world's 20 fastest-growing economies.
These insights offer a glimpse into Africa's economic landscape and the factors contributing to its growth trajectory.
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African Development Bank Group President Dr Akinwumi Adesina at the launch of Macroeconomic Performance and Outlook (MEO) of the African continent on Friday, April 12, 2024.
Factors driving economic growth in African economies
Prof Kevin Urama, the Chief Economist and Vice President of the African Development Bank, highlighted several factors underpinning Africa's economic growth.
These include a decline in commodity dependence through economic diversification, strategic investments in key growth sectors, and an increase in both public and private consumption.
Additionally, positive developments in key export markets have further bolstered growth prospects for the continent.
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The launch of Macroeconomic Performance and Outlook (MEO) of the African continent on Friday, April 12, 2024.
Projected GDP growth for African economies in 2024
The report forecasts that Africa's real gross domestic product (GDP) growth will average 3.8% and 4.2% in 2024 and 2025, respectively.
These figures surpass the projected global averages of 2.9% and 3.2% for the same period, showing Africa's resilience amid external shocks and economic challenges.
Regional growth trends in Africa in 2024
The report also provides insights into the growth prospects of Africa's five regions:
The economic growth outlook varies across the regions, with distinct trends shaping each area's trajectory.
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The launch of Macroeconomic Performance and Outlook (MEO) of the African continent on Friday, April 12, 2024.
East Africa: Leading growth momentum
East Africa is expected to maintain its position as the continent's growth leader, with growth rates projected to reach 5.1% in 2024 and 5.7% in 2025.
This growth is fueled by strategic investments aimed at enhancing internal connectivity and promoting intra-regional trade.
North Africa: Steady growth amid challenges
Despite facing adverse weather conditions and macroeconomic challenges, North Africa's growth is expected to hold steady at 3.9% in 2024, with a slight improvement to 4.1% in 2025.
Central Africa: Moderate Growth Outlook
Central Africa's growth is forecasted to moderate to 3.5% in 2024, but a projected recovery in private consumption, coupled with increased mining investment and exports, could drive growth to 4.1% in 2025.
Southern Africa: Persistent Economic Weakness
Southern Africa is anticipated to experience sluggish growth, with rates of 2.2% and 2.6% projected for 2024 and 2025, respectively. Economic challenges in South Africa, the region's largest economy, contribute to this subdued outlook.
West Africa: Promising Growth Trajectory
West Africa is poised for growth acceleration, with rates projected to reach 4% and 4.4% in 2024 and 2025, respectively.
Strong growth in most countries within the region is expected to offset the slowdowns observed in Nigeria and Ghana.
African Development Bank Group President Dr Akinwumi Adesina at the launch of Macroeconomic Performance and Outlook (MEO) of the African continent on Friday, April 12, 2024.
Top performing African economies in 2024
The report identifies eleven African countries expected to demonstrate robust economic performance in 2024.
- Niger (11.2%)
- Senegal (8.2%)
- Libya (7.9%)
- Rwanda (7.2%)
- Cote d’Ivoire (6.8%)
- Ethiopia (6.7%)
- Benin (6.4%)
- Djibouti (6.2%)
- Tanzania (6.1%)
- Togo (6%)
- Uganda (6%)
These countries exhibit promising growth prospects, driven by various factors such as infrastructure development, investment inflows, and policy reforms.