Africa’s Gross Domestic Product (GDP) growth is set to rebound, reaching 3.8 percent in 2025 and 4.1 percent in 2026, a report by the United Nations Economic Commission for Africa (UNECA) has revealed.
However, the recovery remains fragile due to uncertain global economic conditions, growing debt service obligations, frequent natural disasters, and escalating conflict and violence, the report said on Wednesday
UNECA’s report revealed that Africa will see easing inflationary pressures and gradually declining debt in the coming years.
Overall, the report underscored that despite the projected boost in growth, the pace of economic expansion in the region remains below the growth rate of the previous decade (2000-2014) and is insufficient to have a significant effect on poverty reduction.
Presenting the report, Zuzana Schwidrowski, UNECA’s director at macroeconomics, finance and governance division said African economies remain resilient but growth is below levels to advance social development across the continent.
According to the director, the contribution of trade to Africa’s growth is below past levels while intra-African trade is becoming more and more vibrant and diversified in some sub-regions of the continent.
The report further noted that Africa remains the second fastest growing region amid declining inflationary pressure.
The report said extreme poverty in Africa has declined, in line with the downward global trend, but remains high in almost all the sub regions of Africa in 2024, North Africa being the exception.
MG/as/APA