Africa dominates list of world’s 20 fastest-growing economies in 2024 - AfDB report

Africa will account for eleven of the world’s 20 fastest-growing economies in 2024, the African Development Bank Group (AfDB) said in its latest Macroeconomic Performance and Outlook of the continent released on Friday.

Overall, real gross domestic product (GDP) growth for the continent is expected to average 3.8 per cent and 4.2 per cent in 2024 and 2025, respectively.

This is higher than projected global averages of 2.9 per cent and 3.2 per cent, the report said.

The continent is set to remain the second-fastest-growing region after Asia.

The top 11 African countries projected to experience strong economic performance forecast 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%), and Uganda at 6%.

“Despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more than 5%,” AfDB president Akinwumi Adesina said, calling for larger financing pools and several policy interventions to further boost Africa’s growth.

Africa’s Macroeconomic Performance and Outlook is released in the first and third quarters of each year, providing an assessment of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.

The latest report is calling for cautious optimism given the challenges posed by global and regional risks.

These risks include rising geopolitical tensions, increased regional conflicts, and political instability – all of which could disrupt trade and investment flows, and perpetuate inflationary pressures.

President Adesina emphasised that fiscal deficits have improved, as faster-than-expected recovery from the pandemic helped shore up revenue.

He cautioned that with the global economy mired in uncertainty, the fiscal positions of the African continent will continue to be vulnerable to global shocks.

The report shows that the medium-term growth outlook for the continent’s five regions is slowly improving.