The African Development Bank (AfDB) has forecasted an optimistic outlook for Nigeria and other West African countries, with the growth rate expected to rise from an estimated 3.6% in 2023 to 4.2% in 2024 and further to 4.4% in 2025.
Kevin Urama, the Vice-President and Chief Economist of AfDB, made this announcement during the unveiling of the African Economic Outlook 2024 at the bank’s ongoing 2024 Annual Meetings in Nairobi, Kenya.
Urama highlighted that the projected growth is an upgrade of 0.3 percentage points for 2024 over previous projections, indicating stronger growth prospects in the region’s major economies, including Côte d’Ivoire, Ghana, Nigeria, and Senegal.
Despite facing challenges such as persistent high food and energy prices, climate change, and political instability, African economies have demonstrated resilience. The average real Gross Domestic Product (GDP) growth is projected to stabilize at 4.0% in 2024–25, compared to the estimated 3.1% in 2023.
The report suggests that the rebound in Africa’s growth will be driven by East Africa, Southern Africa, and West Africa, with 40 countries expected to experience higher growth rates in 2024 compared to 2023.
Additionally, the average growth in oil-exporting countries is anticipated to decline slightly in 2024 due to factors such as lower oil production targets set by OPEC and uncertainties in countries like South Sudan and Angola.
However, non-oil resource-intensive economies are expected to experience a significant improvement in growth, driven by increased demand from China for metals and minerals.
Overall, Africa is poised to maintain its position as the second-fastest-growing region globally, with GDP growth projected to exceed the global average of 3.2% in 2024.
The AfDB’s outlook offers a positive perspective on Africa’s economic trajectory, emphasizing the continent’s potential for sustained growth and development in the coming years.
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