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Africa’s GDP growth to stabilise at 4.3% in 2026, 4.5% in 2027: AfDB
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)