Africa’s economy is forecast to grow at 3.9 percent in 2023 from 3.6 percent in 2022, United Nations Economic Commission for Africa (UNECA) official has said.
Presenting a report on recent economic and social developments in Africa on Thursday at the ongoing 55th session of the commission, Macroeconomics and Governance Division Director of the UNECA Adam Elhiraika said Africa’s GDP growth declined from 4.6 percent in 2021 to 3.6 percent in 2022 and but is expected to rebound to 3.9 percent in 2023.
“The slowdown in the global economy, high prices fuelled by the Ukrainian conflict, climate change and worsening international economic and financial conditions significantly impacted Africa’s growth in 2022,” said Elhiraika.
According to the director, Africa was the fastest growing region after East and South Asia (4.5 percent), followed by South-Eastern Europe (3.2 percent), and Latin America and the Caribbean (2.1 percent) in the developing world.
“Unfortunately Africa continues to grow at a low and unsteady rate of GDP,” the said noting that the anticipated 3.9 percent growth rate this year remains low compared to the pre COVID-19 periods and Africa’s needs to create jobs and reduce poverty.
He said fiscal deficits and debt levels are projected to improve in 2023, but they remain relatively higher or at par with pre-pandemic levels in most countries except in Central and Southern Africa which according to the director have had significant improvements.
The 3.9 percent anticipated Africa’s economic growth during the current fiscal year is mainly driven by growth in the continent’s east, north and west Africa sub regions, said the director.
Elhiraika said inflation is expected to decline this year as countries of the continent are expected to tighten their monetary policies to withstand inflationary pressures.
Rising borrowing costs and debt service burdens pose a significant challenge going forward, said Elhiraika, indicating that Africa’s debt-to-GDP ratio is estimated to reach 61.9 percent in 2023.
Inflation across the continent is estimated to decline to 12 percent in 2023 from 12.8 percent in 2022, he noted.
MG/APA