The short- to medium-term macroeconomic projections for Africa by the African Development Bank (AfDB) have been revised lower for 2023 and 2024.
In a statement, the bank stated that it has updated its forecast, which had been 4.0 and 4.3 percent, respectively, to 3.4 and 3.8 percent.
The statement claims that the revised statistics can be found in the Macroeconomic Performance and Outlook (MEO) update for 2023 Africa, which is a follow-up to the Bank’s May release of the 2023 Africa Economic Outlook.
The statement read, “The somewhat lower figures reflect the ongoing, long-term effects of COVID-19, geopolitical tensions, and conflicts.”
The research projects that inflation in Africa would increase to 17.1% in 2024 and 18.5% in 2023.
The MEO report advised countries to stick to strict monetary policies in the short run to prevent inflation.
It said that fiscal measures that support economic diversification and do away with supply-side constraints should support this.
“It urges governments to increase effective investment in human capital and physical infrastructure over the medium- to long-term,” the statement continued.
