The World Bank has reduced Sub-Saharan Africa’s 2024 economic growth forecast to 3%. The cut was mainly due to the destruction of Sudan’s economy in a civil war.
The world bank affirmed that without the Sudanese conflict, which disrupted economic activities and triggered displacement, the regional growth in 2024 would have been higher and in line with its initial April estimate
However, the world bank says the growth is expected to remain reasonably above last year’s 2.4 percent due to a higher private consumption and investment.
The bank also noted that the growth forecasts could still be affected further by violent conflict and climate events such as droughts, floods, and cyclones.
In its latest economic growth report, Nigeria’s economy is projected to grow by 3.3% this year and 3.6% in 2025. Also, Kenya, the richest economy in East Africa, will expand by 5% this year. Meanwhile, growth in South Africa is expected to increase by 1.1% this year, rising to 1.6% in 2025.
The World Bank says this forecast can only be realised when these countries tackle soaring inflation, rising debt profile and leverage the increasing youth population to boost production.
