The latest Macroeconomic Performance and Outlook of the African Continent released on Friday by the African Development Bank Group suggests that Africa will account for eleven of the world’s 20 fastest-growing economies in 2024. ?
Overall,?real gross domestic product (GDP) growth for the continent is expected to average 3.8 per cent and 4.2 per cent in 2024 and 2025, respectively.??
This is higher than the projected global averages of 2.9 per cent and 3.2 per cent, the report shared with the Ghana News Agency, said. ?
The continent is set to remain the second-fastest-growing region after Asia. ?
The top 11 African countries projected to experience strong economic performance forecast in percentage terms are 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 (six), and Uganda at (six). ?
‘Despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more tha
n five per cent,’ the Bank Group President, Dr?Akinwumi Adesina, was quoted as saying and called for larger pools of financing and several policy interventions to further boost Africa’s growth. ?
Africa’s Macroeconomic Performance and Outlook (MEO), a?biannual publication released in the first and third quarters of each year, complements the existing?African Economic Outlook (AEO), which focuses on key emerging policy issues relevant to the continent’s development.?
The MEO report provides an up-to-date evidence-based assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments. ?
The latest report is calling for cautious optimism given the challenges posed by global and regional risks.
These risks include rising geopolitical tensions, increased regional conflicts, and political instability-all of which could disrupt trade and investment flows, and perpetuate inflationary pressures. ?
President Adesina emphasised that fiscal def
icits had improved as faster-than-expected recovery from the pandemic helped shore up revenue.?
‘This 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. The stabilisation is also due to the fiscal consolidation measures, especially in countries with elevated risks of debt distress.’?
He cautioned that with the global economy mired in uncertainty, the fiscal positions of the African continent would continue to be vulnerable to global shocks. ?
The report shows that the medium-term growth outlook for the continent’s five regions is slowly improving, a pointer to the continued resilience of Africa’s economies.?
Presenting the key findings of the report, the African Development Bank’s Chief Economist and Vice President, Prof.?Kevin Urama, said: ‘Growth in Africa’s top-performing economies has benefitted from a range?of factors, including declining commodity dependence through economic diversi
fication, increasing strategic investment in key growth sectors, and rising both public and private consumption, as well as positive developments in key export markets.’???
‘Africa’s 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.’?
Ambassador Albert Muchanga, the Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, African Union Commission, said:
‘The future of Africa rests on economic integration. Our small economies are not competitive in the global market. A healthy internal African trade market can ensure value-added and intra-African production of manufactured goods.’
He assured that the MEO forecast, and recommendations would be made available to African heads of state and that the report would be useful when the African Union made its proposals to the G20- an inform
al gathering of many of the world’s largest economies to which the African Union was admitted last year. ?
The improved growth figure for 2024 reflects concerted efforts by the continent’s policymakers to drive economic diversification strategies focused on increased investment in key growth sectors as well as the implementation of domestic policies aimed at consolidating fiscal positions and reversing the increase in the cost of living and boosting private consumption. ?
Up to 41 countries across the continent would, in 2024, achieve an economic growth rate of 3.8 per cent and in 13 of them, growth would be more than one percentage point higher than in 2023. ?
The confluence of shocks notwithstanding, the resilience of the continent’s economies remains strong, with positive growth projected for the continent’s five regions. ?
West Africa’s growth is projected to pick up to four and 4.4 per cent in 2024 and 2025, respectively. ??
Strong growth in most countries in the region is projected to offset slowdo
wns in Nigeria and Ghana.??
The announced withdrawal of Burkina Faso, Mali, and Niger from the Economic Community of West African States casts a shadow over the sustainability of gains amid growing uncertainties.?
Source: Ghana News Agency