Africa’s real gross domestic product (GDP) growth is projected to stabilise at 4.3 per cent in 2026 and grow further to 4.5 per cent in 2027, according to the African Development Bank (AfDB) Group’s 2026 Africa Macroeconomic Performance and Outlook (MEO) report.

Despite ongoing regional and global headwinds, Africa continues to demonstrate impressive resilience and maintains its status as a global growth frontier, it noted.

Africa’s real GDP growth is projected to stabilise at 4.3 per cent in 2026 and grow further to 4.5 per cent in 2027, an African Development Bank report said.
Growth in 2025 exceeded 5 per cent in 22 African nations and topped 7 per cent in six.
Despite regional and global headwinds, Africa continues to demonstrate impressive resilience and maintains its status as a global growth frontier, it noted.

Africa outpaced the global average in 2025 as its real GDP surged to 4.2 per cent, up from 3.1 per cent in 2024, comfortably eclipsing the 3.1-per cent world average, the report said.

A key finding in the report is the ‘broad-based’ surge, with growth exceeding 5 per cent in 22 African countries, and topping 7 per cent in six, bolstered by easing inflationary pressures, improved macroeconomic management and favourable agricultural conditions, an AfDB release noted.

Twelve of the 20 fastest-growing economies in the world last year were African.

East Africa maintained its lead last year as the continent’s fastest-growing region, posting 6.4-per cent GDP growth, with its expansion driven by the surge in growth performances of 9.8 per cent in Ethiopia, 7.5 per cent in Rwanda and 6.4 per cent in Uganda.

Africa’s GDP per capita growth rose from 0.9 per cent in 2023 to 1.1 per cent in 2024 and 1.9 per cent in 2025, but still remains too low to propel rapid poverty reduction.

Inflation is declining, with average inflation estimated at 13.6 per cent in 2025, down from 21.8 per cent in 2024; further reductions are projected for 2026 and 2027.

Foreign direct investment rebounded sharply in 2024, rising by more than 75 per cent to reach $97 billion.

Remittance flows to the continent rebounded strongly in 2024, rising by more than 14 per cent to $104.6 billion—offsetting the 6-per cent decline recorded in 2023 and making remittances the largest single source of external non-debt financing, surpassing foreign portfolio investment.

Fibre2Fashion News Desk (DS)

This hidden inventory is best understood through indirect but telling indicators. In Bangladesh, for instance, total textile capacity is estimated at ~*.*–*.* million tons, while actual consumption has dropped to around *.* million tons, implying utilisation levels of just ~** per cent, leaving a significant portion of capacity effectively idle. Similar patterns are visible across South Asia, where spinning and weaving units are operating well below optimal levels. In India and Pakistan, industry feedback suggests mills are running at **–** per cent capacity, with yarn inventories building up due to slower offtake from downstream buyers. Cotton dynamics are adding to the pressure, with global inventories exceeding *** million bales, keeping prices volatile and discouraging fresh procurement.

The pressure intensifies further along the value chain. Fabric manufacturers, particularly in Bangladesh, are facing delayed or reduced orders from garment exporters, leading to a build-up of greige and processed fabric stocks. At the same time, exporters themselves are holding finished goods as shipment cycles lengthen. Geopolitical disruptions around the Strait of Hormuz have increased transit times by *–** days on key routes, while freight costs have risen by **–** per cent, slowing inventory movement and delaying cash realisation.

The performance of Bangladesh’s readymade garments (RMG) exports in the next few quarters will largely depend on the pace of economic recovery in major importing countries, stabilisation of global supply chains and the ability of the sector to diversify products and markets, the country’s central bank said in a recent report.

Foreseeing a ‘cautiously moderate’ near-term outlook for the RMG industry, Bangladesh Bank (BB) projected a combination of external demand uncertainty and emerging opportunities in key export markets.

Bangladesh’s RMG exports performance in the next few quarters will depend on the pace of economic recovery in major buying nations, stabilisation of global supply chains and the sector’s ability to diversify products and markets, the central bank noted.
Foreseeing a ‘cautiously moderate’ near-term outlook for the sector, it projected external demand uncertainty and emerging opportunities in key markets.

“Strengthening logistics, enhancing productivity and expanding into higher value apparel segments might be critical for maintaining the competitiveness of Bangladesh in the global garment market,” the bank’s ‘Quarterly Review of Readymade Garments (RMG): October-December of FY26’ noted.

The sector continued to occupy the dominant share in the country’s export basket, accounting for 80.36 per cent of total export earnings during the October-December period of fiscal 2025-26 (FY26).

Amid continuing demand uncertainty globally, the sector contracted during the quarter, with earnings reaching $9.74 billion, a 5.99 per cent year-on-year (YoY) decline.

Global demand conditions, inflationary pressures in importing countries, shifts in consumer spending patterns and supply chain adjustments continue to influence order volumes and export receipts, the bank observed.

In addition, production costs, exchange rate movements, and logistical conditions play a considerable role in shaping the competitiveness of Bangladesh’s garment exports.

These show a large and resilient industry providing the bulk of export earnings and employment facing growing short-term headwinds as it moves into the rest of FY26, the bank added.

Fibre2Fashion News Desk (DS)