Africa’s Economic Growth To Outperform Rest Of the World – ADB Reports

The current population of Africa of about 1,422,436,803 people based on the latest United Nations projections accounts for 16.72% of the total global population. The continent, which is rich in resources, has experienced economic expansion driven by increases in commodity, service, and manufacturing sales. Africa’s economic growth primarily depends on commerce, industry, agriculture, and human resources.

In 2017, the African Development Bank claimed that Africa has the world’s second-fastest expanding economy, with average growth predicted to be 3.4% in 2017, and 4.3% in 2018. Growth had been prevalent throughout the continent, with almost one-third of African nations seeing 6% or higher annual growth rates, and the remaining 40% experiencing 4% to 6% annual growth rates. Several international business commentators also identified Africa as the world’s future economic development engine.

Today, Africa’s economic growth is expected to outpace the rest of the globe over the next two years, with real GDP averaging approximately 4% in 2023 and 2024. This is higher than the expected worldwide averages of 2.7% and 3.2%, according to African Development Bank’s Macroeconomic Performance and Outlook report, which was issued in Abidjan on Thursday.

With a detailed regional growth analysis, the paper demonstrates that, despite severe headwinds from global socioeconomic shocks, all five areas of the continent remain robust, with a solid medium-term prognosis. According to the analysis, Africa’s expected average real GDP growth rate fell to 3.8% in 2022, down from 4.8% in 2021, due to major obstacles resulting from the Covid-19 shock and Russia’s invasion of Ukraine. Despite the slowing economy, 53 of Africa’s 54 nations had positive growth. The continent’s five regions remain sturdy, with a stable medium-term prognosis.

African Development Bank Group President Dr Akinwumi Adesina said the new report was released at a time when African economies were displaying their resilience in the face of considerable obstacles.

“With 54 countries at different stages of growth, different economic structures, and diverse resource endowments, the pass-through effects of global shocks always differ by region and by country. Slowing global demand, tighter financial conditions, and disrupted supply chains, therefore, had differentiated impacts on African economies,” he said.

“Despite the confluence of multiple shocks, growth across all five African regions was positive in 2022—and the outlook for 2023–24 is projected to be stable,” he added.

Africa’s top five pre-Covid-19 performing economies are expected to develop by more than 5.5% on average in 2023-2024, reclaiming their place among the world’s ten fastest-growing economies. These are Rwanda (7.9%), Côte d’Ivoire (7.1%), Benin (6.4%), Ethiopia (6.0%), and Tanzania (5.6%).

Other African nations are expected to expand by more than 5.5% between 2023 and 2024. These are the Democratic Republic of the Congo (6.8%), The Gambia (6.4%), Mozambique (6.5%), Niger (9.6%), Senegal (9.4%), and Togo (6.3%).

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