Socioeconomic performance of North Africa: subregional profile 2022–2023

Abstract

This report provides a comprehensive analysis of the socio-economic performance of North Africa for the period 2022-2023, highlighting key macroeconomic trends, challenges, and policy recommendations. In 2022, the region faced significant economic challenges, including weak external demand, high borrowing costs, and adverse weather conditions, leading to a decline in GDP growth from 4.9% in 2021 to 3.9%. The ongoing conflict between Russia and Ukraine exacerbated these issues, prompting countries like Egypt and Tunisia to seek financial assistance from the IMF. While Algeria and Mauritania benefited from high commodity prices, Libya's economy contracted due to oil production disruptions. The report forecasts a stabilization of growth at 4.8% in 2023, driven by recoveries in Libya and Morocco, despite persistent fiscal pressures and rising inflation. Climate change and food security risks are identified as critical challenges, with high poverty and unemployment rates further complicating the socio-economic landscape. The report concludes with policy recommendations aimed at improving public spending efficiency, enhancing climate resilience, and promoting inclusive labor market policies to address the region's socio-economic vulnerabilities.