AfDB expects Africa's economic growth to slow to 4.2%

NAIROBI:

Africa's economic growth is expected to slow slightly to 4.2% this year from 4.4% last year, the African Development Bank said, as Middle East tensions push up fuel and food costs, before picking up again in 2027.

Despite last year's shocks from trade and geopolitical tensions, the 54-nation continent remained one of the world's fastest-growing regions alongside Asia, outpacing Europe and Latin America, the AfDB said in its annual outlook published on Tuesday.

Growth in 2025 was driven by higher farm output, improved macro-economic policies and higher commodity prices. Africa's biggest regional development bank said it expected growth next year to return to 4.4%, with forecasts based on the assumption that the Middle East shock will last for two-three months.

"The impact of this shock on growth and macroeconomic stability will depend on the duration of the supply chain disruptions and their effects on global energy and fertiliser prices," said the report.