Africa Maintains Growth Momentum, Outperforms Global Economy in 2025 – AfDB Report
Africa has maintained its position as a global growth frontier, demonstrating notable resilience despite persistent regional and global challenges, according to the 2026 Africa Macroeconomic Performance and Outlook (MEO) report released by the African Development Bank Group.
The report, unveiled on Monday, March 30, 2026, at the Bank’s headquarters in Abidjan, highlights that the continent outperformed the global average in 2025, recording real GDP growth of 4.2 per cent, up from 3.1 per cent in 2024, and above the global average of 3.1 per cent.
A major takeaway from the report is the broad-based nature of the growth, with 22 African countries posting growth rates above 5 per cent, including six economies expanding by more than 7 per cent. The performance was supported by easing inflationary pressures, stronger macroeconomic management, and favourable agricultural output.
The Bank projects Africa’s real GDP growth to stabilise at 4.3 per cent in 2026, before strengthening further to 4.5 per cent in 2027. Notably, 12 of the world’s 20 fastest-growing economies in 2025 were African.
Regionally, East Africa retained its position as the fastest-growing sub-region, expanding by 6.4 per cent, driven by robust growth in Ethiopia (9.8%), Rwanda (7.5%), and Uganda (6.4%).
Despite the growth momentum, improvements in living standards remain gradual. GDP per capita growth rose from 0.9 per cent in 2023 to 1.1 per cent in 2024 and further to 1.9 per cent in 2025, but remains insufficient to drive rapid poverty reduction.
Inflationary pressures showed signs of easing, with average inflation declining to an estimated 13.6 per cent in 2025 from 21.8 per cent in 2024, with further moderation expected over the medium term.
On the external front, foreign direct investment rebounded significantly, rising by over 75 per cent in 2024 to reach $97 billion. Remittance inflows also strengthened, increasing by more than 14 per cent to $104.6 billion, reversing a 6 per cent decline in 2023 and emerging as the largest source of external non-debt financing, ahead of foreign portfolio investment.
Speaking at the launch, President of the African Development Bank Group, Dr Sidi Ould Tah, noted that the continent is navigating a shifting global landscape marked by geopolitical fragmentation, trade tensions, and declining development finance flows.
He stressed that the Bank’s Four Cardinal Points agenda is designed to respond directly to these evolving challenges, describing it as a strategic framework aligned with the risks and opportunities identified in the report.
Dr Ould Tah further indicated that the report’s projections were developed prior to the recent escalation of tensions in the Middle East, adding that the Bank, in collaboration with partners including the United Nations Development Programme, is assessing the potential implications for African economies.
Providing further insights, Chief Economist and Vice President for Economic Governance and Knowledge Management at the Bank Group, Professor Kevin Urama, expressed confidence in the continent’s ability to withstand external shocks.
“Africa has demonstrated resilience in the face of past shocks and retains the capacity to recover, provided appropriate policy responses are implemented,” he stated.
He added that a prolonged crisis extending beyond three months could reduce Africa’s projected growth by approximately 0.2 percentage points in 2026.
An expert panel comprising finance ministers and development stakeholders from Côte d’Ivoire, Liberia, Zimbabwe, Lesotho, and the International Monetary Fund discussed policy priorities for sustaining growth and strengthening economic resilience.
The panel emphasised the need to advance domestic resource mobilisation reforms, deepen local capital markets, and accelerate digitalisation to enhance tax administration efficiency.
They also highlighted country-level reform successes and agreed that lessons from past economic shocks position the continent to better navigate emerging global uncertainties.
The African Development Bank publishes the Macroeconomic Performance and Outlook report twice yearly to complement its flagship Africa Economic Outlook, providing timely and policy-relevant insights to member countries, development partners, and investors.
