AfDB Trims Africa’s Growth Forecast as Global Trade Tensions Rise

Africa’s economy is projected to grow by 3.9% in 2025, up from 3.3% last year, according to the African Development Bank’s latest African Economic Outlook. However, this growth forecast has been trimmed by 0.2 percentage points due to rising global trade tensions, particularly new US tariffs and retaliatory measures from trade partners. These disruptions are expected to weaken global demand, diminishing Africa’s exports to the world and reducing financial asset values, even though the US accounts for only 5% of the continent’s trade. The AfDB also revised its 2026 forecast down to 4.0%. Still, over 20 African economies—including Ethiopia, Niger, Rwanda, and Senegal—are expected to grow by more than 5%, showing resilience amid uncertainty. The final growth outcome hinges on the evolution of the US “Liberation Day” tariff pause.

Reuters