Xinhua
16 Mar 2023, 22:14 GMT+10
ADDIS ABABA, March 16 (Xinhua) -- Africa's economy is projected to grow 3.9 percent in 2023 from 3.6 percent in 2022, a United Nations Economic Commission for Africa (UNECA) official has said.
Presenting a report on recent economic and social developments in Africa Wednesday at the 55th session of the Commission, UNECA's Macroeconomics and Governance Division Director Adam Elhiraika said Africa's GDP growth declined from 4.6 percent in 2021 to 3.6 percent in 2022 but is expected to rebound to 3.9 percent in 2023.
"The slowdown in the global economy, high prices fuelled by the Ukrainian conflict, climate change and worsening international economic and financial conditions significantly impacted Africa's growth in 2022," said Elhiraika, adding that the 3.9 percent growth forecast for 2023 is mainly driven by growth in the continent's east, north and west Africa sub-regions.
According to the director, Africa was the fastest growing region after East and South Asia (4.5 percent), followed by South-Eastern Europe (3.2 percent), and Latin America and the Caribbean (2.1 percent) in the developing world.
"Unfortunately, Africa continues to grow at a low and unsteady rate of GDP," the director said, noting that the anticipated 3.9 percent growth rate this year remains low compared to the pre-COVID-19 periods and Africa needs to create jobs and reduce poverty.
He said fiscal deficits and debt levels are projected to improve in 2023, but they remain relatively higher or at par with pre-pandemic levels in most countries except in Central and Southern Africa which has had significant improvements.
Elhiraika said inflation across the continent is estimated to decline to 12 percent in 2023 from 12.8 percent in 2022 as countries of the continent are expected to tighten their monetary policies to withstand inflationary pressures.
Fiscal space remains constrained despite narrowing economic deficits, making it harder for most countries to invest in major sectors to ensure resilience from shocks, said the director, adding that rising borrowing costs and debt service burdens pose a significant challenge going forward and that Africa's debt-to-GDP ratio is estimated to reach 61.9 percent in 2023.
The official added that currency depreciation has been more pronounced in countries with flexible exchange rate regimes and in commodity-exporting countries. Countries with fixed exchange rates, especially those within the Economic and Monetary Community of Central Africa and West African Economic and Monetary Union experienced an average depreciation of 10 percent against the U.S. dollar in 2022, he said.
Get a daily dose of Sierra Leone Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Sierra Leone Times.
More InformationWASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
SAN FRANCISCO, California: Nvidia, the Silicon Valley chipmaker at the heart of the artificial intelligence boom, this week briefly...
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
Hohenstein-Ernstthal [Germany], July 13 (ANI): The wet weather has come to play on Saturday at the Liqui Moly Grand Prix of Germany,...
Shimla (Himachal Pradesh) [India], July 12 (ANI): Himachal Pradesh's Revenue, Horticulture and Tribal Development Minister Jagat Singh...
(Photo credit: Erik Williams-Imagn Images) England's Cara Gainer and Australia's Gabriela Ruffels share a one-stroke lead at 11-under...
(250712) -- HARARE, July 12, 2025 (Xinhua) -- Jonathan Marerwa, manager for radio news at the Zimbabwe Broadcasting Corporation, speaks...
New Delhi [India], July 12 (ANI): Delhi experienced a fresh spell of rain on Saturday, just two days after experiencing extensive waterlogging...
(250712) -- KAMPALA, July 12, 2025 (Xinhua) -- Winston Agaba, managing director of Uganda Broadcasting Corporation, speaks at the premiere...