The African Development Bank has projected that the East African region will see a 5.7 percent economic growth in 2025, up by 0.6 percent from the previous year.
In its latest outlook seen by APA over the weekend, the bank said Ethiopia, Tanzania, Uganda and Rwanda are anticipated to lead the region’s growth with set record GDP expansions of over 6 percent in 2025.
The outlook linked the better growth to continued government spending in infrastructure investment, ambitious economic reforms in countries like Ethiopia and Tanzania and better service sector productivity.
The projected growth acceleration of 0.6 percentage points in 2024 from 3.5 percent in 2023 reflects the anticipated strong economic performance of countries in the region.
High government spending and strategic investments to improve in-country connectivity and deepen intraregional trade, coupled with efforts to modernise agricultural production systems and boost productivity in the services sector, will drive the strong performance in most countries.
In Djibouti, growth will be supported by higher public investment to expand and modernize transport infrastructure as the country seeks to leverage its geostrategic position to become an interregional logistics and trade hub.
On the downside, the war-induced destruction of critical infrastructure and extensive curtailment of trade and production activities could drive Sudan’s economy further into recession.
Ethiopia entered the year 2025, through extensive macroeconomic reforms in opening the banking sector for foreign investment, liberalising the foreign currency market and launching the first stock market exchange after five decades.
MG/as/APA