The African Development Bank (AfDB) has reviewed its short-to medium-term macroeconomic forecasts for Africa for 2023 and 2024 downward. AfDB while giving details in a statement said it reviewed the forecast to 3.4 and 3.8 per cent from 4.0 per cent and 4.3 per cent, respectively. The bank had earlier in May projected the African economy to grow by 4.0 Cortana% in 2023 and 4.3% in 2024. However, it now forecasts the African economy to expand by 3.4% in 2023 and 3.8% in 2024. According to the statement, the updated data has been published in the 2023 Africa's Macroeconomic Performance and Outlook (MEO) update, a follow-up to the Bank's 2023 Africa Economic Outlook released in May.
"The slightly lower figures reflect the persistent long-term effects of COVID-19, geo-political tensions, and conflicts.
"It also reflects the effects of climate shocks, a global economic slowdown, and limited fiscal space for African governments to adequately respond to shocks and sustain post-pandemic economic recovery gains.
"While inflationary measures are receding globally, they are persistent in Africa and continue to weigh heavily on the continent's short-to-medium-term economic performance," the statement added.
“Across country groupings, for Africa’s tourism-dependent countries, growth is projected to decline from 9.3 per cent in 2022 to 5.9 per cent in 2023 before moderating to 4.1 per cent in 2024. Oil-exporting countries are expected to see a marginal decline from 4.4 per cent in 2022 to a projected 3.7 per cent and 3.5 per cent in 2023 and 2024, respectively.
“Growth in non-resource-intensive economies is projected to rise to 4.8 per cent in 2023, reflecting a 0.5 percentage point upward revision from 2022, and to rise further to 5.3 per cent in 2024”, the report stated.
It also referenced the recent spate of coups in Africa, the renewed Israel-Palestine war, and the lingering Russia-Ukraine conflict as highlights of geopolitical risk stifling growth in the continent.
However despite the downward revision, economic growth in Africa is still above the global average and that of any economic region except Asia.
