- The bank predicts accelerated growth in all regions except for central Africa in 2024.
- 15 African countries achieved economic growth exceeding 5% last year.
- Nigeria, the largest economy in West Africa, is expected to experience a growth of 2.9% in 2024.
Africa's economic growth slides to 3.2% in 2023 - AfDB
The African Development Bank has reported a decline in Africa's economic growth from 4.1% in 2022 to 3.2% last year.
Africa's economic growth slides to 3.2% in 2023 - AfDB
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The AfDB attributed the economic challenges to political instability, China's economic slowdown, and the impact of COVID-19 and Russia's war in Ukraine.
The final data for 2023 fell short of the 3.4% growth forecast by the AfDB in November. The bank also revised its regional growth projections for central and north Africa, citing a recession in the oil-producing Equatorial Guinea and the aftermath of severe flooding in Libya.
"The shocks buffeting African economies since 2020 have damaged growth, with long-term implications," the bank said in a report.
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Despite the challenges, the AfDB said that 15 African countries achieved economic growth exceeding 5% last year, including Ethiopia, currently undergoing external debt restructuring, as well as Ivory Coast, Democratic Republic of Congo, Mauritius, and Rwanda.
The bank predicts accelerated growth in all regions except for central Africa in 2024, with southern Africa seen as remaining the laggard at 2.2% compared with 5.7% in east Africa.
Southern Africa's "sluggish performance reflects the continued economic stagnation in South Africa," the bank said, with the region's largest economy, which holds national elections this year, predicted to grow 1.1% in 2024, up from 0.8% last year.
"This underwhelming economic situation has aggravated the country's persistently high unemployment, poverty, and inequality and prevented it from reaping democratic dividends in the 30 years since the end of White minority rule," AfDB said.
Nigeria, the largest economy in West Africa, is expected to experience a growth of 2.9% in 2024, a 0.4 percentage point increase from the previous year.
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Meanwhile, in Egypt, high inflation and foreign exchange shortages are forecast to drag growth down to 3.7% this year, versus 4% in 2023.
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