AFDB: ELEVEN OF THE WORLD’S TWENTY FASTEST-GROWING ECONOMIES IN 2024 ARE IN AFRICA (FULL LIST)
The latest Macroeconomic Performance and Outlook (MEO) report from the African Development Bank Group reveals that Africa is set to host eleven of the world’s 20 fastest-growing economies in 2024.
The continent’s real gross domestic product (GDP) growth is projected to average 3.8% in 2024 and 4.2% in 2025, surpassing the expected global averages of 2.9% and 3.2%, respectively.
Africa is positioned to maintain its status as the second-fastest-growing region after Asia.
The 11 fastest-growing economies and their projected growth rates for 2024 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 – 6%
- Uganda – 6%.
Commenting on the report, Dr. Akinwunmi Adesina, the president of the African Development Bank (AfDB), called for increased financing in light of the positive outlook, noting that 15 African countries already posted a growth rate above 5%.
He stated, “Despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more than 5%.”
Across the five regions in Africa, the bank projected East Africa to experience the fastest economic growth in 2024 at 5.1%, followed by West Africa at 4.0%.
On the other hand, North and Central Africa are expected to grow at 3.9% and 3.5%, respectively, while Southern Africa will see the weakest growth at 2.2% in 2024.
Despite the positive outlook, the continent faces several risks, including inflation, currency depreciation, elevated debt levels, and political risks due to coups across the Sahel.
Inflation remains a threat to Africa’s population due to monetary policy tightening in Europe and the United States, as well as geopolitical tensions in Europe and the Middle East affecting energy and agricultural supply chains.
By the end of 2022, approximately 19 African countries posted double-digit inflation rates, leading to a reduction in consumer spending and pushing vulnerable populations deeper into poverty. The figure remained unchanged in 2023, with the continent averaging around 17.3% inflation.
In the previous year, many African countries experienced severe currency depreciation, with commodity exporters being the most vulnerable, primarily due to hawkish inflation targeting monetary policies in the United States.
Political risks, such as internal conflicts and coups, also threaten economic growth across the continent. In the previous year, the continent witnessed coups in Niger and Gabon. However, since 2020, coups have occurred nine times with varying degrees of success, mainly across the Sahel region.
From the News Source: Techeconomy
