Gross Domestic Product (GDP) projections are essential to define the economic strategies and policies of governments across the globe. They offer a reliable insight into a region’s overall development trajectory, growth potential and economic health.
The first half of 2023 saw more robust growth than expected in April. Although the global average prediction has mostly not changed from the July update, different nations have different projections. As the year draws to a close, here are the notable GDP predictions for Africa.
Top 10 African Nations With Highest GDP Projections For 2023
1. Equatorial Guinea – – 6.2%
2. São Tomé and Príncipe – 0.5%
3. South Africa – 0.9%
4. Central African Republic – 1%
5. Ghana – 1.2%
6. Tunisia – 1.3%
7. Angola – 1.3%
8. Malawi – 1.7%
9. Lesotho – 2.1%
10. Morocco – 2.4%
Top 10 African Nations With Lowest GDP Projections For 2023
1. Mozambique – 7%
2. Democratic Republic of Congo – 6.7%
3. Côte d’Ivoire – 6.2%
4. Rwanda – 6.2%
5. Ethiopia – 6.1%
6. Guinea – 5.9%
7. The Gambia – 5.6%
8. Benin – 5.5%
9. Togo – 5.4%
10. Tanzania – 5.2%
China’s Evolving Economic Engagement With Sub-Saharan Africa
Concerns have been raised over China’s slowing economy hitting sub-Saharan Africa‘s growth. Still emerging from the COVID pandemic, countries in the region have been hit by a sluggish global economy, high borrowing costs, worldwide inflation and a cost-of-living crisis.
In many cases, borrowing costs are still elevated, exchange-rate pressures persist, inflation is too high and political instability is a concern. It is important for authorities to guard against a premature relaxation of stabilisation policies, while also focusing on reforms.
China has forged deep economic ties with countries in sub-Saharan Africa, making it the region’s largest single country trading partner. But China’s recovery from the pandemic has been slowed recently owing to a property downturn and flagging demand for its manufactured goods.
This matters for Africa. According to IMF’s latest Regional Economic Outlook, a one percentage point drop in China’s growth rate could reduce average growth in sub-Saharan Africa by about 0.25 percentage points within a year. For oil exporters, the loss could be more significant.