TheCable

The African Development Bank (AfDB) has projected that Nigeria’s economy will grow to 2.9 percent in 2024 and rise to 3.7 percent in 2025.

AfDB also said the continent’s economy will remain at 3.8 percent in 2024 but grow to 4.2 percent in 2025.

The projections were published by AfDB on Friday in a report titled ‘Africa’s Macroeconomic Performance and Outlook (MEO)’.

The bank also said the continent is set to remain the second-fastest-growing region after Asia, accounting for 11 of the world’s 20 fastest-growing economies in 2024.

AfDB projected that the top African countries to experience strong economic performance this year are Niger (11.2 percent), Senegal (8.2 percent), Libya (7.9 percent), Rwanda (7.2 percent), and Cote d’Ivoire (6.8 percent).

Others are; Ethiopia (6.7 percent), Benin (6.4 percent), Djibouti (6.2 percent), Tanzania (6.1 percent), Togo (6 percent), and Uganda (6 percent).

AfDB said: “Overall, real gross domestic product (GDP) growth for the continent is expected to average 3.8% and 4.2% in 2024 and 2025, respectively.”

“This is higher than projected global averages of 2.9% and 3.2%.”

‘SLOW-DOWNS IN NIGERIA, GHANA’

In West Africa, AfDB said growth is projected to rise from an estimated 3.2 percent in 2023 to 4 percent in 2024 and 4.4 percent in 2025. 

“This is expected to offset the slow-downs in the region’s largest economy, Nigeria, and in debt-ridden Ghana, where growth is projected to be 2.9 percent and 2.8 percent, respectively,” AfDB said.

“But both could recover strongly in 2025, with projected growth of 3.7 percent and 4.5 percent, respectively.

“The recovery will be underpinned by macroeconomic policy reforms initiated in 2023 through rationalizing the fuel subsidy and addressing exchange rate misalignment in Nigeria and through fiscal consolidation to tackle the growing public debt in Ghana.”

It added that growth in most countries is projected to be at least 4 percent in 2024.

Commenting on the outlook, Akinwumi Adesina, president of AfDB, said the medium-term growth outlook for the continent’s five regions is slowly improving, a pointer to the continued resilience of Africa’s economies.

“Despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more than 5%,” Adewunmi said 

The bank also called for larger pools of financing and several policy interventions to further boost Africa’s growth.

On his part, Kevin Uram, AfDB’s chief economist and vice-president, said growth in Africa’s top-performing economies has benefitted from a range of factors.

He cited factors such as “declining commodity dependence through economic diversification, increasing stra­tegic investment in key growth sectors, and rising both public and private consumption, as well as positive developments in key export markets”.

Urama said Africa’s economic growth is projected to regain moderate strength as long as the global economy remains resilient, disinflation continues, investment in infrastructure projects remains buoyant, and progress is sustained on debt restructuring and fiscal consolidation.