A variety of internal and external shocks, including climate change and the Russian invasion of Ukraine, came just as Africa’s economy appeared to be recovering from the COVID-19 epidemic, worsening already rapidly growing rates of inflation and borrowing prices in 2022.
There is evidence that the war has hurt the economy of the continent through increased commodity prices, higher food and fuel prices, and headline inflation, despite the fact that one would dispute that Africa has significant direct economic and financial ties to Russia and Ukraine.
Notwithstanding these difficulties, some of the world’s fastest-growing economies are still found in Africa.
Five of the world’s fastest-growing economies include Angola, Ethiopia, Nigeria, Kenya, and South Africa, according to the International Monetary Fund’s most recent Global Economic Outlook, Business Insider Africa reported.
It is projected to increase by 3.6% in 2023 and 3.9% in 2024, which would result in a potential quadrupling of its size.
1. Angola – Angola is set to reclaim its spot as the third-largest economy in sub-Saharan Africa, thanks to a return to growth linked to higher oil prices. Angola is the continent’s second-largest oil producer after Nigeria and is also a significant producer of rough diamonds. The IMF expects Angola’s GDP to expand by 8.6% this year, reaching $135 billion. This is a significant increase from previous years, and Angola’s economy will likely continue to grow in the coming years.
2. Ethiopia – Ethiopia is set to replace Kenya as the fourth-largest economy in sub-Saharan Africa, according to the IMF. This is due to the easing of armed conflict in the nation and the continuation of ambitious economic reform efforts aimed at opening up one of Africa’s fastest-growing but most closed economies. The IMF predicts Ethiopia’s GDP will reach $126.2 billion this year, expanding by 13.5%. This is an impressive figure, and Ethiopia’s economy will likely continue to grow in the coming years.
3. Nigeria – As the largest economy on the continent, Nigeria maintains its top spot in sub-Saharan Africa’s economic rankings. The IMF predicts that Nigeria’s GDP will hit $574 billion this year. This is an impressive figure, and Nigeria’s economy will likely continue to grow in the coming years.
4. South Africa – The IMF predicts that South Africa will retain its position as the second-largest economy in sub-Saharan Africa, with a GDP of $422 billion this year. This is an impressive figure, and South Africa’s economy will likely continue to grow in the coming years.
5. Kenya – According to the IMF, Kenya’s GDP is projected to record a slower growth of 2.4% this year due to the aftershocks of the Covid-19 pandemic, drought, election jitters, and disruption of global supply chains. The IMF predicts that Kenya’s GDP will reach $117.6 billion this year, behind Angola and Ethiopia. Despite this slower growth, Kenya’s economy is still one of the top economies to watch in the region.
Additional sources: Business Insider
