The African Development Bank (AfDB)’s macroeconomic performance and outlook report estimate that Africa’s economic growth will stabilise at 4% in 2023-24, from 4.8% in 2021.
The report notes that the slowdown in the region’s growth reflects the impact of domestic and external shocks including high inflation and global supply chain disruptions.
It emphasises that China’s anticipated reopening after three years of zero-COVID policy and the stable growth outlook for Asia could boost Africa’s growth in the medium term.
African Development Bank President Akinwumi Adesina says the tighter global financial conditions put pressure on Africa’s currencies.
“Africa’s growth rate is projected to average about 4% in 2023 and 2024, and I must say growth everywhere is quite low and so that much higher than the world projected average of 2.7% and 3.2% respectively,” says Adesina.
“Tighter global financial conditions put pressure on Africa’s currencies, and you’ve seen that in all the countries you are, massive depreciation of currencies that are stocking inflation in domestic markets and this is raising the risk of very high inflation,” he adds.
