IMF Revises Africa’s Growth Forecast Amid Global Trade Tensions
IMF Revises Africa’s Growth Forecast Amid Global Trade Tensions
Date: April 25, 2025
Source: The Weekly Roundup
The International Monetary Fund (IMF) has adjusted its growth projections for Africa, citing escalating global trade tensions as a significant factor. In its latest World Economic Outlook, the IMF forecasts a decline in global growth to 2.8% in 2025 and 3% in 2026. For Africa, the growth estimate for 2025 has been reduced by 0.3 percentage points, bringing it down to 3.9%.
This downward revision is attributed to recent tariff measures introduced by the United States and subsequent countermeasures from its trading partners, leading to heightened policy uncertainty and potential disruptions in global economic activity.
In a joint statement, Hervé Ndoba, Chair of the African Caucus of Finance Ministers and Central Bank Governors to the IMF, and Kristalina Georgieva, Managing Director of the IMF, expressed concerns over the continent’s economic resilience. They noted that while Africa has shown some resilience amid multiple shocks, the sudden shift in the global outlook threatens to undermine efforts to control inflation, stabilize public debt, and reduce external imbalances.
This development underscores the importance of strengthening intra-African trade and economic integration to mitigate external shocks. Initiatives like the African Continental Free Trade Area (AfCFTA) and the Continental Market Integration (CMI) are pivotal in building a more resilient and self-reliant African economy.
For more detailed information, please refer to the full report: The Weekly Roundup
