AfDB cuts Africa’s ’25 growth forecast to 3.9% 

The African Development Bank (AfDB) has cut its 2025 economic growth forecast for Africa to 3.9 per cent, down from an earlier projection of 4.1 per cent, citing the impact of new US trade tariffs and retaliatory measures that have disrupted global markets.

In its African Economic Outlook released Tuesday during its annual meetings in Côte d’Ivoire, the bank warned that heightened trade tensions have added to global economic uncertainty, weighing on Africa’s export revenues and commodity prices. The AfDB also revised its 2026 growth forecast down to 4.0 per cent, a 0.4 percentage point reduction.

While the US accounts for only 5 per cent of Africa’s global trade, the AfDB said the continent has already felt the effects through falling commodity prices and revalued financial assets. The bank noted that the outlook remains fluid and could be influenced by the outcome of the 90-day pause on “Liberation Day” tariffs announced by Washington.

Despite the downgrade, growth in 21 African economies is expected to exceed 5 per cent this year, with Ethiopia, Niger, Rwanda, and Senegal projected to expand by at least 7 per cent. Africa’s economy grew by 3.3 per cent in 2024.

Attribution: Reuters

Subediting: Y.Yasser