African Development Bank Predicts 4.1% Economic Growth for Africa in 2025

The African Development Bank (AfDB) has released its latest macroeconomic performance and outlook report, forecasting that Africa’s real GDP will grow by 4.1% in 2025 and 4.4% in 2026. This growth is attributed to economic reforms, declining inflation, and improved financial conditions and debt management in many African countries.

The report highlights that 12 African nations will be among the world’s 20 fastest-growing economies in 2025. South Sudan is expected to lead with a staggering 34.4% growth, while Rwanda, Senegal, and Uganda are projected to achieve growth rates exceeding 7%.

Economic Challenges in Sudan

In contrast, Sudan faces severe economic difficulties. The AfDB report forecasts economic contraction for Sudan in 2025. Additionally, a report from the International Monetary Fund (IMF) indicates that Sudan’s inflation rate has surged to approximately 119%, making it the highest among Arab nations. This inflation is largely driven by ongoing internal conflicts and their impact on economic stability.

Despite these challenges, IMF experts suggest that Sudan’s economy could see improvement by 2025 if a peace agreement is reached and political stability is restored. Under these conditions, growth could potentially reach 8.3%, offering hope for economic recovery.

This contrast between African economies underscores the need for effective economic policies and political stability to ensure sustainable growth across the continent.