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The Africa’s Macroeconomic Performance and Outlook report, that is to be released in the first and third quarters of every year, will provide African policymakers, global and domestic investors, researchers, and other development partners with an up-to-date, evidence-based assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.

Africa’s Gross Domestic Product Growth to Stabilize in 2023-2024

By Khalifa Hemed
Published March 4, 2023

African Development Bank's chief economist and vice president Kevin Urama says Africa could benefit from high demand for her commodities as countries seek alternatives for food and energy in response to disruptions caused by the war in Ukraine.
African economies remain resilient with a stable outlook in 2023-2024 despite the tightening global financial conditions.

African Development Bank, in its Africa’s Macroeconomic Performance and Outlook 2023 report, estimates the continent’s average GDP will stabilize at 4% in the next two years up from 3.8% in 2022.

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African Development Bank’s chief economist and vice president Kevin Urama says Africa could benefit from high demand for her commodities as countries seek alternatives for food and energy in response to disruptions caused by the war in Ukraine.

The continent, he notes, remains a treasure trove for smart investors globally, but it must strive for higher growth rates, more inclusive economies, and greater resilience to external shocks.

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The Africa’s Macroeconomic Performance and Outlook report, that is to be released in the first and third quarters of every year, will provide African policymakers, global and domestic investors, researchers, and other development partners with an up-to-date, evidence-based assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.“The stable outlook projected for 2023–2024 reflects the continuing policy support in Africa, global efforts to mitigate the impact of external shocks and rising uncertainty in the global economy,” he says.

Africa’s Macroeconomic Performance and Outlook report, that is to be released in the first and third quarters of every year, will provide African policymakers, global and domestic investors, researchers, and other development partners with an up-to-date, evidence-based assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.

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“To meet the significant financing gaps in Africa, it is imperative to enact policies that can mobilize and leverage private financing for development in Africa,” Urama says.

The unfavorable global conditions have led to rising inflation, higher debt servicing costs and increased risk of debt distress in developing countries, including African ones.

“As in many emerging market economies, tightening financial conditions and the appreciating US dollar have had dire consequences for most African economies,” Urama says.

Most African currencies, especially in commodity-exporting countries, lost substantial value against the dollar in 2022 due to monetary policy tightening in the United States. The depreciation rates ranged from 21% in Malawi to 69% in South Sudan.

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Urama cautions that currency weaknesses in Africa’s more globally integrated economies, such as Algeria, Kenya, Nigeria, and South Africa, may persist in 2023.

“Key drivers of the currency depreciations include the tightened global financial conditions and weak external demand, macroeconomic imbalances, constrained revenues and weak investment flows, and political risk aversion associated with countries’ election cycles,” Urama says.