Africa’s quarterly economic performance and outlook January–March 2022

Abstract

The conflict between the Russian Federation and Ukraine is a contributing factor to the weakening growth prospects for African economies. The conflict began at a time when the African economy was already reeling from the adverse effects of the coronavirus disease (COVID-19) pandemic, climate shocks and heightened security risks in some countries on the continent. Economic growth, which was projected to reach 3.6 per cent in 2022, has been downgraded by 0.4 percentage points from the December 2021 projections, reflecting the preliminary assessment by the Economic Commission for Africa (ECA) of the impact of the conflict on African economies. Countries that are net importers of energy and food will be hit the hardest by surging international prices as a result of the conflict between the Russian Federation and Ukraine. Many of those countries are already experiencing the scarring effects of the pandemic and have little fiscal space to resist new spending pressures resulting from the conflict. African Governments should focus on their priority areas and on those who have been most affected by the conflict, while enhancing investment in health, food security and energy from cleaner sources. Global cooperation to achieve these objectives is more important now than ever.