The Democratic Republic of Congo (DRC), Niger, Rwanda and South Sudan, along with the island nations of Seychelles and Mauritius, are set to be sub-Saharan Africa’s fastest growing economies this year, with each expected to record GDP growth of 6% or higher, according to the latest International Monetary Fund (IMF) projections.
Looking ahead to 2023, Senegal (8.1% GDP growth), DRC (6.7%), Rwanda (6.7%), Côte d’Ivoire (6.5%), Benin (6.2%) and Togo (6.2%) are anticipated to be the region’s best performers.
The below table shows the IMF’s GDP growth projections for each sub-Saharan African country:
The region’s recovery from the Covid-19 pandemic has been sharply interrupted, according to the IMF. Last year, economic activity in sub-Saharan Africa finally bounced back, bringing GDP growth in 2021 up to 4.7%. Growth is expected to slow this year by more than 1 percentage point to 3.6%, as a worldwide slowdown and a dramatic pickup in global inflation spill into the region.
Three major global developments are reshaping sub-Saharan Africa’s outlook: the slowdown in advanced economies and emerging markets, tightening global financial conditions, and volatile commodity prices.
An intensification of the war in Ukraine or prolonged restrictions on Russian exports could add to the turmoil seen over the past year, putting additional upward pressure on food and energy prices in sub-Saharan Africa, exacerbating food affordability problems for the most vulnerable populations, and fueling social tensions. Furthermore, an escalation in geopolitical strains between Russia and Western countries could also increase global risk aversion and raise borrowing costs for the region, especially for countries with more fragile fiscal positions.
The top 11 African countries projected to experience strong economic performance forecast are Niger (11.2%), Senegal (8.2%), Libya (7.9%), Rwanda (7.2%), Cote d'Ivoire (6.8%), Ethiopia (6.7%), Benin (6.4%), Djibouti (6.2%), Tanzania (6.1%), Togo (6%), and Uganda at 6%.
However, in 2022, Niger was again among the world's fastest-growing economies, with an 11.5% GDP increase, largely due to a boost in agricultural production.
Sub-Saharan Africa's economy is set to expand by 3.7 percent in 2021 and 3.8 percent in 2022. This follows the sharp contraction in 2020 and is much welcome, but still represents the slowest recovery relative to other regions.
According to IMF data, Nigeria was the largest economy in Africa in 2022, however, a devaluation of the Naira caused Nigeria to drop to third place in 2023, behind Egypt with a GDP of $394 billion and South Africa with a GDP of $378 billion.
Infant mortality rates in African countries were once very high, but they have been steadily declining, even though they continue to be substantially higher than many regions of the world. These declines in infant mortality rates have contributed to the rapid growth of Africa's population.
The population in Africa was forecast to expand annually by an average of 2.37 percent between 2020 and 2025. Over 20 countries might grow above this rate, with Niger leading by an annual population change of 3.7 percent in the mentioned period.
At 8.4%, India's economy expanded at its fastest pace in six quarters, data showed late Thursday, on strong private consumption and upbeat manufacturing and construction activity.
Nigeria - As the largest economy on the continent, Nigeria maintains its top spot in sub-Saharan Africa's economic rankings. The IMF predicts that Nigeria's GDP will hit $574 billion this year. This is an impressive figure, and Nigeria's economy will likely continue to grow in the coming years.
"Growth is set to bounce back in Sub-Saharan Africa but the recovery is still fragile," the report said. "The pace of economic expansion in the region remains slow and insufficient to have a significant effect on poverty reduction."
After four turbulent years, the outlook for sub-Saharan Africa is gradually improving. Growth will rise from 3.4 percent in 2023 to 3.8 percent in 2024, with nearly two thirds of countries anticipating higher growth.
To follow, South Africa's GDP was worth 405.7 billion U.S. dollars and ranked as the second-highest on the continent. After Egypt, the third largest economy, two other North African countries - Algeria and Morocco - came next on the list. African economies are growing fast.
Nigeria and South Africa, the region's wealthiest countries, generate almost half of the region's GDP. A chart showing Sub-Saharan Africa's ten largest GDPs.
In 2022, services were the main economic sector in Sub-Saharan Africa, contributing almost 47 percent to the GDP. Industries made up the second-leading sector, with a GDP contribution of approximately 28 percent.
Nigeria - As the largest economy on the continent, Nigeria maintains its top spot in sub-Saharan Africa's economic rankings. The IMF predicts that Nigeria's GDP will hit $574 billion this year. This is an impressive figure, and Nigeria's economy will likely continue to grow in the coming years.
Sub-Saharan Africa is the second fastest-growing region of the world today, trailing only developing Asia. This is remarkable compared to the current complicated state of the global economy, with Europe still struggling and the United States slowly on the mend.
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