by Rachel Savage
JOHANNESBURG, Feb 16 (Reuters) – Africa’s economic growth fell to 3.2% last year, from 4.1% in 2022, the African Development Bank (AfDB) said on Friday, but forecast higher growth this year for the zone, Central Africa excepted.
Political instability and China’s economic slowdown have added to the shocks of COVID-19 and the war in Ukraine, explains the ADB.
In November, the ADB projected a growth rate of 3.4%. The Bank also lowered its growth projections for Central and North Africa, due to the recession in oil-producing Equatorial Guinea and devastating floods in Libya.
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“The shocks suffered by African economies since 2020 have damaged growth, with long-term implications,” the bank said in its report.
Despite the shocks faced by the region, 15 African countries posted economic growth of more than 5% last year, the AfDB said, including Ethiopia, Ivory Coast, the Democratic Republic of Congo, the Mauritius and Rwanda.
The bank forecasts stronger growth in all regions except Central Africa in 2024, with Southern Africa expected last with growth at 2.2%, compared to 5.7% for South Africa. ‘East.
“Southern Africa’s poor performance is a reflection of economic stagnation in South Africa,” the bank said. Southern Africa’s largest economy is expected to grow 1.1% in 2024, up from 0.8% last year.
“This disappointing economic situation has worsened rates of unemployment, poverty and inequality and is preventing the country from reaping democratic dividends,” the AfDB said.
Nigeria, West Africa’s largest economy, is expected to grow 2.9% in 2024, up 0.4 percentage points from last year, as a strongly devalued pushes inflation up.
In Egypt, high inflation and foreign currency shortages are expected to lower growth to 3.7% this year, from 4% in 2023. (Editor Rachel Savage, French version Corentin Chappron, editing by Zhifan Liu)
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