The narrative surrounding Africa’s projected 2023 economic performance and even the world at large may appear discouraging, depending on the source. However, the reverse can also be said, if a different source is referenced.
Numerous economists from across the globe, since the last quarter of 2022, have deduced that the world may face some of the same economic challenges it did in 2022, resulting in a similar or even worse fiscal turnout. Some economists even went as far as predicting a global recession based on metric systems and formulas believed to be systematic.
However, according to the inaugural edition of the African Development Bank’s (AfDB) Macroeconomics Performance and Outlook Report for January 2023, Africa’s GDP growth is projected to average about 4% in 2023 and 2024, higher than the projected world averages of 2.7% and 3.2%, respectively.
Nonetheless, the AfDB did admit that the subject is highly nuanced and the data in the bi-annual report would be updated as conditions surrounding macroeconomic performances evolve.
An extract from the AfDB’s report reads “Global macroeconomic conditions have recently become increasingly uncertain with the persistence of multiple shocks that make policymaking and investment decisions very challenging.
The highly volatile external environment has spilled over to the African continent, threatening to halt the gradual recovery from the lingering effects of the COVID-19 pandemic.
The dynamic and persistent nature of global shocks and their interaction with prevailing pockets of domestic and regional risks require regular diagnosis and targeted policy actions to address their impact on African economies.”
In this report, the AfDB detailed the economic growth performance and outlook of the 5 African regions, and subsequently every country on the continent.
According to the report, North Africa is expected to be stable, at 4.3% from 2022 to 2023. West Africa’s economic growth projection increased from 3.6% in 2022 to 4.1% in 2023. East Africa is projected to grow to 5.0% in 2023, from 4.2% in 2022. Central Africa is expected to decline in growth from 4.7% in 2022 to 4.3% in 2023. And Southern Africa, much like Central Africa, would also experience a decline in its economic growth from 2.5% in 2022 to 2.3% in 2023.
The AfDB’s report also included the projected GDP growth of each African country for the year 2023, and below are ten of the highest.
These figures came from a calculation done by analyzing the data sets from the African Development Bank statistics; the International Monetary Fund’s World Economic Outlook, October 2022; and United Nations Population Division estimates.
