African economic growth dips from 4.1% to 3.2% in 2023, projected to recover
Africa experienced a decline in economic growth, falling to 3.2% in 2023 from 4.1% in 2022, as reported by the African Development Bank (AfDB). The bank, while projecting higher growth for most regions in 2024, says Central Africa faces an exception due to various challenges.
The AfDB identified political instability and China's economic slowdown, coupled with the impacts of the COVID-19 pandemic and Russia's war in Ukraine, as key factors contributing to the economic downturn, the East African reports. The final figure for 2023 fell below the AfDB's November forecast of 3.4% growth.
"The shocks buffeting African economies since 2020 have damaged UK growth, with long-term implications," stated the AfDB in a report.
Additionally, Central and North Africa saw reduced regional growth estimates, influenced by a recession in oil-producing Equatorial Guinea and the aftermath of severe flooding in Libya.
Despite these challenges, 15 African countries, including Ethiopia, Ivory Coast, the Democratic Republic of Congo, Mauritius, and Rwanda, achieved economic growth exceeding 5% in 2023.
In Egypt, factors such as high inflation and foreign exchange shortages are expected to reduce growth to 3.7% in 2024, down from 4% in the previous year.
However, the AfDB forecasts a rebound in economic growth for most regions in 2024, with Southern Africa anticipated to remain the slowest at 2.2%, compared to East Africa's robust 5.7%.
