The African Development Bank (AfDB) has reviewed its short- to medium-term macroeconomic forecasts for Africa for 2023 and 2024 downward.
The bank, which said this in a statement, revealed that it revised its prediction to 3.4 and 3.8 per cent, down from 4.0 and 4.3 per cent, respectively.
According to the statement, the updated data has been published in the 2023 Africa’s Macroeconomic Performance and Outlook (MEO) update, which is a follow-up to the Bank’s 2023 Africa Economic Outlook, released in May.
“The slightly lower figures reflect the persistent long-term effects of COVID-19, geo-political tensions, and conflicts,” it said.
According to the report, Africa’s inflation is expected to reach 18.5 per cent in 2023 and 17.1 per cent in 2024.
In the immediate term, the MEO update recommended governments maintain tight monetary policies to keep inflation under control.
It stated that this should be backed by fiscal policies that promote economic diversity and remove supply-side limitations.
“Over the medium- to long-term, it calls on governments to scale up efficient investment in human capital and physical infrastructure,” it added.
AfDB evaluates Africa’s economic forecast for 2023, 2024
