Africa's economy is set for a rebound, with the United Nations projecting GDP growth to reach 3.8% in 2025 and 4.1% in 2026, according to a new report released Wednesday by the UNECA in Addis Ababa.
Zuzana Schwidrowski, director of UNECA's Macro-Economics, Finance, and Governance Division, presented these findings, highlighting the underlying resilience of African economies. Despite this positive outlook, the report cautions that current growth levels are still not sufficient to adequately drive social development across the continent.
While intra-African trade is becoming more dynamic and diversified in certain areas, its overall contribution to Africa's economic expansion has lessened compared to previous years. Nevertheless, Africa's economic performance remains notable on a global scale, securing its position as the second-fastest-growing region worldwide, largely attributed to easing inflationary pressures. The report further notes that while extreme poverty is decreasing in line with global trends, it remains critically high across nearly all African sub-regions, with North Africa as the exception.
Adding a note of caution, the UNECA report, as cited by AL24 News, underscores climate change as a significant impediment to Africa's developmental progress. The anticipated rise in temperatures is expected to negatively impact agricultural output, potentially exacerbating food insecurity across various parts of the continent.