Africa’s quarterly Economic performance and outlook October - December 2022

Abstract

Economic growth in Africa is thought to have slowed significantly in 2022. Growth is expected to remain weak in 2023 due to a decline in global growth, inflationary pressures, supply chain disruptions, geopolitical tensions, climate events, tightening global financial conditions and heightened risks of debt distress. The current period is characterized by persistent global supply chain constraints and high inflation rates. Global economic prospects remain modest and the likelihood of a global recession is high. In 2022, many central banks adopted harsher monetary policies to address rising inflation rates; that trend is expected to continue into 2023. To attain low inflation rates, a stable currency and accelerated growth, national authorities should shift the focus of their attention from cutting consumption to increasing output.