Now Reading
Africa’s Growth Accelerates to 3.5% This Year and 4.2% in 2025

Africa’s Growth Accelerates to 3.5% This Year and 4.2% in 2025

The United Nations Economic Commission for Africa (UNECA) predicts that growth in African economies will accelerate to 3.5 per cent this year and 4.2 per cent in 2025, after having slowed in the last two years.

“Economic growth in Africa declined to 2.8 per cent in 2023, from 3.1 per cent in 2022, due to the tightening of monetary policy, limited demand for African exports and the impact of the war in Ukraine, but economic expansion is expected to accelerate this year to 3.5 per cent and reach 4.2 per cent in 2025,” according to a presentation by chief economist and deputy executive secretary Hanan Morsy.

Speaking at the conference of finance, planning and economic development ministers in Victoria Falls, Zimbabwe, Morsy presented the main economic indicators for the region, estimating a drop in inflation from 18.3 per cent last year to 14.5 per cent this year and 10.6 per cent in 2025, due to “continued tightening of monetary policy and high prices in the food and energy sectors”.

UNECA estimates that, in a context of devaluation of national currencies, debt costs have increased and economies have been damaged by the multiple crises affecting the continent.

“These multiple crises that we have faced have continued to perpetuate and exacerbate levels of poverty, inequality and unemployment, with 476 million people experiencing extreme poverty, which is an increase of 71 per cent compared to 1990,” said Hanan Morsy.

The economist emphasised that “the number of people who are vulnerable to extreme poverty increased by 28% between 2019 and 2023, which increases unemployment and gender inequality”.

See Also

Among the main policy recommendations, UNECA highlights the mobilisation of more domestic resources and the introduction of innovative financing mechanisms, through capacity building, institutional strengthening, the promotion of tax reforms, the use of digital technology and the introduction of environmental taxation.

The meeting of the committee of African experts took place in Victoria Falls until Friday, followed by side events this weekend, and concludes with the meeting of the ministers with the Finance, Planning and Economic Development portfolios on Monday and Tuesday.

Lusa

SUBSCRIBE TO GET OUR NEWSLETTERS:

SUBSCRIBE TO GET OUR NEWSLETTERS:

Scroll To Top

We have detected that you are using AdBlock Plus or other adblocking software which is causing you to not be able to view 360 Mozambique in its entirety.

Please add www.360mozambique.com to your adblocker’s whitelist or disable it by refreshing afterwards so you can view the site.