According to an African Development Bank report, despite sluggish growth and the worst inflation rates in a decade in 2022, African economies are still “resilient” and double-digit price increases are also anticipated to taper down.
The 54 countries that make up Africa were severely impacted by the Covid outbreak, the effects of climate change, and the worldwide economic ramifications of Russia’s invasion of Ukraine.
The ADB assessment stated that a stronger dollar, inflation, and a downturn in export demand to major trade partners in Europe and China had “dire ramifications” for the economies of the continent.
From 4.8 percent in 2021 to 3.8 percent in 2022, the economy grew less rapidly.
Southern Africa saw the largest slump, which was exacerbated by the energy crisis in South Africa, an economic powerhouse, and poor domestic demand.
The reopening of China following tight Covid rules is anticipated to increase the continent’s growth, which is projected to be approximately 4% this year and in 2024.
The fastest increase is anticipated in Central Africa, helped by favorable commodity prices.
The rate of inflation in Africa rose from 12.9% in 2012 to 13.8% in 2022, which is “the highest in more than a decade.”
East Africa, where inflation was 25.3%, saw the most severe price increases.
Zimbabwe, where inflation rose to 285 percent from 98.5 percent the year before, had the worst figures.