4 minutes read) (Global)
The International Monetary Fund (IMF) in its World Economic Outlook said that though the African continent is facing the impact of the global slowdown stemming from the Covid-19 pandemic, Russian -Ukraine war, and global price spiral et al, five of the world’s fastest-growing economies, such as Angola, Ethiopia, Nigeria, Kenya, and South Africa are bucking the trend
The International Monetary Fund (IMF) in its World Economic Outlook said that though the African continent is facing the impact of the global slowdown stemming from the Covid-19 pandemic, Russian -Ukraine war, and global price spiral et al, five of the world’s fastest-growing economies, such as Angola, Ethiopia, Nigeria, Kenya, and South Africa are bucking the trend. These economies are expected to grow at 3.6% in 2023 and 3.9% in 2024 on average.
Angola, riding on the back of its oil wealth and higher prices commanded by hydrocarbon products in the market, is expected to retain its position as the third-largest economy in sub-Saharan Africa. Apart from being the second largest producer of oil in Africa, after Nigeria, the southern African country is rich in rough diamonds. Of late, the country is trying to mine out diamonds, besides focussing on Agriculture and tourism to diversify its economic activities. The IMF expects Angola’s GDP to expand by 8.6% this year, taking its GDP to an absolute level of US $135 billion.
Not to fall behind, Ethiopia, which had undergone a rough trajectory in the last two years because of the disturbances in Tigray region, east of the country, is expected to become the fourth-largest economy in sub-Saharan Africa, replacing Kenya, says the IMF report. The country is pursuing an ambitious economic rejuvenation program Ethiopia’s GDP is set to peak at US $126.2 billion this year; a meaty growth of 13.5%. This tempo of growth will continue for some more years.
As Nigeria maintains its top spot in sub-Saharan Africa’s economic rankings, the prediction is that it may continue in the slot in the future driven by its oil wealth and robust industrial base. Nigeria’s GDP will peak at US$574 billion this year, says the IMF report, despite several economic and social issues, the west African country is facing now.
The IMF predicts that South Africa will retain its position as the second-largest economy in sub-Saharan Africa, despite its looming energy crisis, according to the IMF. The country, which is going into election mode (to be held in 2024) will register a GDP of US$422 billion this year.
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Even though Kenya has slipped down in the ranks, its GDP is projected to record a slower growth of 2.4% this year due to the aftershocks of the Covid-19 pandemic, drought, and disruption of global supply chains. The IMF predicts that Kenya’s GDP will reach US$117.6 billion this year, behind Angola and Ethiopia.
