Africa’s economic performance is expected to rise by 3.9% this year, the African Development Bank said in its African Economic Outlook on Tuesday. This year’s forecast covers all 54 member economies.
The bank, also reduced its initial growth forecast from 0.4% to 4.0% from 2026, reducing the same uncertainty from trade tariffs.
“Since January 2025, the world has experienced additional shocks and has exacerbated the already complicated global macroeconomic situation,” the report says.
These shocks include various new tariffs imposed by the United States, as well as retaliatory measures announced and implemented by trading partners.
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The resulting slowdown has led to global demand in turbulence, which is likely to contain Africa’s exports to other parts of the world, AFDB said. “The development of situational liquidity and uncertainty means that it will “depend” on growing into the 90-day break decision of the US announced “liberation date,” lenders said.
The US accounts for only 5% of Africa’s annual global trade, but the continent is already affected by lower raw material prices and downgraded financial assets, AFDB said.
The report’s lender said that the region’s forecast growth this year is supported by growth rates of over 5% of 21 economies, according to the AFDB, which increases at least 7%.
