The African Development Bank (AfDB) has slashed down growth projection from 4.3% to 3.8% for the African economy in 2024 in its revised economic outlook for the period.
The bank had earlier in May projected the African economy to grow by 4.0 Cortana% in 2023 and 4.3% in 2024. However, it now forecasts the African economy to expand by 3.4% in 2023 and 3.8% in 2024.
Despite the downward revision, economic growth in Africa is still above the global average and that of any economic region except Asia.
The bank explained that the downward forecast in GDP growth for the continent is predicated upon slow post-COVID-19 recovery, climate change shocks, political instability, weak global growth and high interest rates.
It mentioned the recent spate of coups in Africa, the renewed Israel-Palestine conflict and the lingering Russia-Ukraine war as highlights of geopolitical risk stifling growth in the continent.
The bank attributed the growth decline in oil-dependent economies to stem from oil production cuts aimed at shoring up falling oil prices, tightening global financial conditions and high inflation strangling growth in non-oil sectors of those economies.
The bank further highlighted that high inflation coupled with weakening currencies in many African countries are some of the macroeconomic factors affecting growth in the continent.