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The African Development Bank lowered its forecast for continent-wide economic growth, warning of “recurring multiple shocks and tariff-induced global uncertainty.”
It projected growth of 3.9% this year, down from 4.1% in a prior forecast, and 4% in 2026, a reduction from 4.4% previously.
East Africa will see the highest average regional growth and Southern Africa will have the lowest, with the continent’s largest economy South Africa expected to grow by just 0.8%. Inflation and interest payments on sovereign debt, which consumes 27.5% of government revenue across Africa, will remain key challenges to growth, the bank said.
Still, Africa’s growth in 2025 will exceed the global average and outperform other continents, except Asia, the AfDB said.
