IMF PROJECTS 4.5% AFRICAN GROWTH DESPITE GLOBAL ECONOMIC PRESSURES

 

The International Monetary Fund has projected that Africa's economy will grow by 4.5 per cent in 2026, despite global energy pressures, declining development assistance and continuing security challenges across parts of the continent.

The forecast was disclosed on Thursday by Zeine Zeidane, head of the IMF's Africa department, during meetings involving finance officials and international financial institutions in Bangkok.

According to the IMF, economic growth across the continent could improve to five per cent in 2027, supported by reform efforts and opportunities arising from mineral exports and other productive sectors.

However, the fund warned that Africa remained vulnerable to external shocks, particularly disruptions to energy supplies, climate-related emergencies and a further decline in development assistance.

Development assistance to the continent fell sharply in the previous year and is forecast to decline by another 12 per cent in 2026, raising concerns about the capacity of vulnerable economies to withstand additional economic pressures.

Persistent conflicts and insecurity also pose risks to food security and economic stability in affected countries.

The IMF urged African governments to strengthen their economies, create employment opportunities and improve their competitiveness by investing in productive sectors.

It also identified artificial intelligence as a potential driver of economic growth, with possible applications in agriculture, healthcare, education and governance.

The projections offer a cautiously positive outlook for African economies, although governments will need to address structural weaknesses and ensure that economic growth translates into improved living standards.