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AfDB report says Africa’s economic growth fell to 3.2% in 2023

Published

10 months ago

February 16, 2024

The African Development Bank (AfDB) said on Friday that although the continent’s economic growth dropped to 3.2 percent last year from 4.1 percent in 2022, it was still expected to expand this year in all sub-regions except Central Africa.

According to the AfDB, the effects of COVID-19 and Russia’s conflict in Ukraine are being exacerbated by political unrest and China’s economic downturn.

The AfDB’s November prediction of 3.4 percent growth was not met by the final 2023 result. In the wake of catastrophic flooding in Libya and an economic downturn in Equatorial Guinea, an oil producer, it also lowered its forecasts for regional growth in Central and North Africa.

“The shocks buffeting African economies since 2020 have damaged growth, with long-term implications,” the bank said in a report.

According to the AfDB, 15 African nations—including Ethiopia, which is restructuring its foreign debt—saw economic growth of more than 5% last year despite the shocks that the continent has been dealing with. These nations include Ivory Coast, Rwanda, Democratic Republic of the Congo, Mauritius, and Ethiopia.

The bank projected faster growth in 2024 across all regions barring central Africa, with Southern Africa continuing to lag behind at 2.2 percent compared to East Africa’s 5.7 percent.

The bank stated that the “sluggish performance reflects the continued economic stagnation in South Africa,” adding that the largest economy in the region—which is hosting national elections this year—is expected to grow by 1.1 percent in 2024, up from 0.8 percent in the previous year.

“This underwhelming economic situation has aggravated the country’s persistently high unemployment, poverty, and inequality and prevented it from reaping democratic dividends in the 30 years since the end of White minority rule,” AfDB said.

According to the report, Egypt’s growth is expected to be hampered by high inflation and shortages of foreign exchange, with growth expected to drop to 3.7 percent this year from 4 percent in 2023.

Meanwhile, Nigeria, the largest economy in West Africa, is expected to grow by 2.9 percent in 2024, up 0.4 percentage points from the previous year as a result of a sharply devalued currency driving up inflation and aggravating a crisis related to the cost of living.

Related Topics:AFDB Africa Economic Growth Featured

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”