Africa's real GDP growth is projected to stabilise at 4.3 percent in 2026 and grow further to 4.5 percent in 2027, the 2026 Africa Macroeconomic Performance and Outlook (MEO) report, released by the African Development Bank Group, projects.
- •Africa outpaced the global average in 2025 as real GDP surged to 4.2%, up from 3.1% in 2024, eclipsing the 3.1% world average.
- •12 of the 20 fastest-growing economies in the world in 2025 were African, with East Africa maintaining its lead as the continent’s fastest-growing region (posting 6.4% GDP growth), with 9.8% in Ethiopia, 7.5% in Rwanda, and 6.4% in Uganda.
- •A key finding in the report is the "broad-based" surge, with growth exceeding 5% in 22 African countries, and topping 7%in six, bolstered by easing inflationary pressures, improved macroeconomic management and favourable agricultural conditions.
In light of recent developments in the Middle East, Dr Ould Tah, President of the AfDB, noted that the 2026 MEO analysis and projections "were prepared before the current crisis" began. He added that the Bank Group and partners, including the United Nations Development Programme are currently assessing the potential consequences of the crisis on the continent.
"Africa has held strong in previous shocks, and has the capacity to bounce back after, provided we do not panic and we instead apply the right policy levers," Prof Kevin Urama, Bank Group Chief Economist and Vice President for Economic Governance and Knowledge Management, said. "In our estimates, if the crisis lasts beyond three months, it might cause a dip of 0.2 percentage point in Africa's economic growth rate in 2026."
Africa’s GDP per capita growth rose from 0.9% in 2023 to 1.1% in 2024 and 1.9% in 2025, but still remains too low to propel rapid poverty reduction. Inflation is declining, with average inflation estimated at 13.6 percent in 2025, down from 21.8 percent in 2024; further reductions are projected for 2026 and 2027.
Foreign direct investment rebounded sharply in 2024, rising by more than 75% to reach $97 billion. Remittance flows rebounded strongly in 2024, rising by more than 14 percent to $104.6 billion—offsetting the 6 percent decline recorded in 2023 and making remittances the largest single source of external non-debt financing, surpassing foreign portfolio investment.
The AfDB Group publishes the Macroeconomic Report biannually to complement its annual Africa Economic Outlook.
