The World Bank has revised its economic growth forecast for Sub-Saharan Africa upward, projecting the region’s economy to expand by 3.8% this year, up from the previous estimate of 3.5%.
The Bank attributes the improved outlook to easing inflation, lower interest rates, and stabilizing currencies across several African economies. It also highlighted stronger intra-African trade and a rebound in consumer spending and private investment as key factors supporting growth.
Countries such as Côte d’Ivoire, Ethiopia, and Nigeria are among those seeing upgraded growth projections. According to the World Bank, the region’s inflation rate is expected to remain around 4% over the next year — a sharp drop from the highs of over 9% recorded in 2022.
The report notes that falling inflation has encouraged central banks to begin easing monetary policies, creating room for economic recovery. A more stable global commodity environment and the resilience of local markets have also helped boost confidence in the region’s medium-term outlook.
While the Bank remains optimistic, it cautioned that risks persist, including potential commodity price shocks, fiscal pressures, and climate-related challenges that could still slow progress.
