The Gross Domestic Product (GDP) of the African continent is expected to grow 4% this year and 3.8% in 2024, predicted the United Nations (UN) in a report released this Wednesday.

After growth on the continent has settled at 3.7% in 2022, African countries will register a slight acceleration of GDP in the next two years, and a drop in inflation, which, however, will remain in double digits in 2023 (14 .4%) and will remain at 9.6% in 2024.

Among the various African regions, those that will register the highest inflation this year are North Africa (16%), West Africa (15.1%), Southern Africa (14.6%).

Even with double-digit inflation, East Africa rises, with 11%, and, with the lowest percentage, the Central African region, with 3.6% inflation in 2023.

These projections are part of the UN’s main economic report, the ‘World Economic Situation and Prospects Report 2023’, which also points out that the highest GDP growth this year will be recorded in East Africa (5.1%), followed by North Africa. (4.8%), West Africa (3.8%), Central Africa (3.4%) and, finally, Southern Africa (2.3%).

In a more general scenario, global inflation is expected to remain high in 2023, at 6.5%, and world production will slow down compared to 2022, settling at 1.9%, announced the UN, urging governments to avoid austerity.

According to the report, a series of serious shocks were reinforced in 2022 – such as the covid-19 pandemic, the war in Ukraine and the consequent food and energy crises, rising inflation, debt tightening, as well as the climate emergency -, and that will continue to have an impact on the world economy in 2023.

The economic outlook presented by the United Nations is “grim” both for developed and developing economies, where the outlook for recession for this year dominates.

“Growth momentum has weakened significantly in the US, EU and other developed economies in 2022, negatively impacting the rest of the global economy through multiple channels. Tightening global financial conditions, along with a strong dollar, exacerbated fiscal and debt vulnerabilities in developing countries.

With regard to Africa, the report stresses that the continent was hit by a confluence of shocks, such as the war in Ukraine, which further weakened the growth prospects of African economies, as it occurred at a time when countries were still recover from the impacts of the covid-19 pandemic, climate shocks and security crises in some countries.

“The share of African countries with double-digit inflation soared to 40% in 2022, driven mainly by supply chain disruptions and the fallout from the war in Ukraine, which made essential food and energy products more expensive,” the report points out.

Despite predicting that favorable export prices will benefit African commodity exporters, the United Nations stresses that a slowdown in global demand will pose challenges for the continent.

“Inflationary pressures are expected to ease in 2023 as monetary policy tightens across the continent. However, rapidly rising borrowing costs and debt service burdens pose significant risks, along with electoral instability and food insecurity.


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