The World Bank expects many economic indicators in Africa to improve this year after the growth rate increased from 2.9% in 2023 to 3.2% in 2024, against the backdrop of lower inflation rates and easing financial conditions.
The bank stated in a report that the difficulties facing major economies such as Nigeria and South Africa have hindered the economic recovery in the region, and inflation is expected to decline this year, although food prices remain high in 2024.
The bank expected a decline in key interest rates, which would stimulate private consumption and, consequently, investment.
It also expected that the North Africa and Sub-Saharan Africa regions would benefit from strong domestic demand, which could boost countries’ growth, especially with expectations of slowing growth in the East Asia and Pacific region, and in Europe and Central Asia.
In this context, the World Bank’s Chief Economist Indermit Gill stressed that most of the elements that helped develop developing countries have gradually dissipated and they now have to face many headwinds, calling on these countries to consider a new approach by accelerating private investment and encouraging the efficient use of capital.
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