Growth forecast at 1.8% in 2022 according to the AfDB

Economic growth is expected to stand at 1.8% in 2022 and 3.3% in 2023, despite the recovery in exports and a partial return of tourists, forecasts the African Development Bank (AfDB).

“This development, below its 2015–19 average, is explained by the rise in commodity prices and the delay in rainfall”notes the African Economic Outlook 2022 report, published by the AfDB, on the sidelines of the Bank’s annual meetings, held in Accra.

In 2022, inflation is expected to exceed 4%, reflecting the rise in import prices, which also affects the energy bill and the current account deficit, said the report. In line with the New Development Model (NMD) aimed at increasing human capital by 2035, social indicators are expected to improve, as by 2025 the Kingdom aims to generalize social protection, compensation in case of loss of employment, health insurance and family allowances, says the AfDB.

The budget deficit is expected to reach 6.3% of GDP in 2022, estimates the same source. And to note that policies aimed at further developing the private sector through the development of small and medium-sized enterprises would strengthen growth and its inclusiveness.

These 57th assemblies, which mark a return to face-to-face meetings after the virtual meetings of the past two years, are intended to be an opportunity to discuss ways to facilitate Africa’s energy transition in a context marked by climate change, the repercussions of which are already remarkable in the countries of the continent.

The objective of these meetings, the theme of which aligns with the 27th United Nations Conference on Climate Change (COP27) scheduled for Egypt next November, is to discuss ways to help African countries adapt to the climate change, in particular through the mobilization of the necessary resources.

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