Breaking news African Economies Expected To Grow 3.4 % In 2024, From 2.6% In 2023 Lastminute news

Although public debt growth is slowing, more than half of governments struggle with external liquidity, debt burdens, says World Bank.

African economies are expected to grow 3.4 % this year and 3.8% in 2025, from 2.6% last year, according to a report released Monday by the World Bank.

"However, this recovery remains tenuous," the World Bank said in a statement. "While inflation is cooling across most economies, falling from a median of 7.1 to 5.1 percent in 2024, it remains high compared to pre-COVID-19 pandemic levels."

The financial institution said growth of public debt is slowing, but more than half of African governments struggle with external liquidity problems and face unsustainable debt burdens.

It said increased private consumption and declining inflation are supporting an economic rebound in sub-Saharan Africa, but the recovery remains fragile due to uncertain global economic conditions, growing debt service obligations, frequent natural disasters, and escalating conflict and violence.

The World Bank noted that economic growth reduces poverty in sub-Saharan Africa less than in other regions.

"Per capita GDP growth of 1 percent is associated with a reduction in the extreme poverty rate of only about 1 percent in the region, compared to 2.5 percent on average in the rest of the world," said Andrew Dabalen, World Bank Chief Economist for Africa.

"In a context of constrained government budgets, faster poverty reduction will not be achieved through fiscal policy alone. It needs to be supported by policies that expand the productive capacity of the private sector to create more and better jobs for all segments of society," he added. -
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