AfDB Forecasts Africa Growth to Slow to 4.2 Percent
The African Development Bank expects continental growth to dip slightly this year as geopolitical instability drives up fuel and food costs. Despite the slowdown, Africa remains one of the world's fastest-growing regions and is projected to rebound to 4.4 percent growth in 2027.
The African Development Bank (AfDB) expects Africa’s economic growth to slow to 4.2% this year from 4.4% last year. This deceleration follows a period of resilience where the continent outpaced Europe and Latin America despite global geopolitical tensions. Investors face heightened volatility as Middle East instability drives up fuel and food costs across the 54-nation region.
### Middle East Tensions Pressure Growth The AfDB annual outlook, published on Tuesday, attributes the slowdown to rising energy and fertilizer prices. The bank’s forecast assumes the current Middle East shock will persist for two to three months. If supply chain disruptions extend beyond this window, macroeconomic stability across the continent could face further risks.
