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Business Insider
5 days ago
- Business
- Business Insider
Top 10 African countries with the most improvement in government balance
The gap between a government's income (mostly from taxes, grants, and other sources) and expenses is measured by this fiscal indicator. Stronger financial management and more economic stability are indicated when a government continuously reports an improvement in its balance from year to year, whether through a decrease in deficits or an increase in surpluses. SEE ALSO: Top 10 African countries with the most spare money in 2025 Steady growth in the general government balance is more than simply a figure for African nations hoping to draw in investment, combat poverty, and unleash sustainable development. Better governance, better budgetary restraint, and a government's capacity to fulfill its obligations are all reflected in it. The net borrowing or net lending of a government is referred to as the general government balance. A budget deficit occurs when the balance is negative, indicating that the government is spending more than it is taking in. A budget surplus is shown by a positive balance, which indicates that the government is operating within or below its means. SEE ALSO: Top 10 African countries with the highest income levels Improving this balance year after year, whether through rising income, falling expenditures, or both, has a big impact on the macroeconomic situation. Credit rating agencies and investors closely monitor a nation's financial situation. A government that gradually improves its budget balance is viewed as economically prudent, which increases the nation's appeal to foreign lenders and foreign direct investment. It is crucial to remember that how a government reaches a better balance is critical. If the balance improves due to significant cuts in critical services or aggressive taxation that stifles growth, the advantages may be eroded. With that said, here are the African countries with better government balances in 2025, compared to 2024, as seen in the Africa Pulse Report. Rank Country Government balance 2025 in % of GDP Government balance 2024 in % of GDP Differential 1. Ghana -2.7% -7.7% 5.0% 2. Senegal -7.6% -11.5% 3.9% 3. São Tomé and Príncipe 3.9% 0.7% 3.2% 4. Togo -3.0% -6.1% 3.1% 5. Central African Republic -2.3% -4.9% 2.6% 6. Guinea-Bissau -4.8% -7.3% 2.5% 7. The Gambia -1.4% -3.5% 2.1.% 8. Mozambique -3.6% -5.5% 1.9% 9. Burundi -5.6% -6.9% 1.3% 10. Côte d'Ivoire -3.0% -4.0% 1.0%
Business Insider
06-06-2025
- Business
- Business Insider
Top 10 African countries with the lowest GDP growth in 2025 compared to last year
In 2025, the economic outlook for most African countries in terms of real GDP growth is less optimistic than in the previous year. Business Insider Africa presents the top 10 African countries with the lowest GDP growth in 2025 compared to last year. This list is courtesy of the Africa Pulse report by the World Bank. South Sudan ranks number 1 on the list. Numerous obstacles and drawbacks for the continent's growth trajectory are presented by this declining tendency. These nations have the potential to influence trade patterns and regional integration by serving as pillars of stability and economic power in their respective areas. African nations with increasing growth are standing out in a year when many economies are slowing down; they are creating the foundation for long-term benefits, increased global significance, and better living conditions for their people. First and foremost, governments are less able to create jobs when GDP slows. The youthful population of Africa is growing quickly, with millions of young people joining the workforce every. Job creation falls behind population growth as economic development stagnates, which exacerbates underemployment and unemployment. More young people may be forced into informal or unstable labor as a result of this circumstance, which might intensify social discontent. Secondly, government revenue is constrained by slower GDP growth. Tax revenue declines with slowing economic activity, which leaves governments with less money to spend on vital areas like public safety, infrastructure, healthcare, and education. Significant investment in growth is hampered by high debt and limited fiscal flexibility. Investors generally prefer stability and growth, and a decline in economic performance indicates increased risk. This implies that countries experiencing slower development may have a more difficult time attracting investment for manufacturing, technology, and resource extraction initiatives, all of which are critical areas for long-term structural reform. Furthermore, countries with slower development are more susceptible to external shocks. Whether it's a rise in fuel prices, climate-related disasters, or trade disruptions, economies that aren't growing fast enough have fewer buffers to absorb these impacts, resulting in increased inequality and economic fragility. With that said, here are the African countries with the largest dip in real GDP growth this year, from last year, as per the Africa Pulse Report by the World Bank. Rank Country Real GDP growth rate 2025 Real GDP growth rate 2024 1. South Sudan -34.7 -7.2 2. Equatorial Guinea -3.1 1.6 3. Rwanda 7.0 8.9 4. Ghana 3.9 5.7 5. Angola 2.7 4.4 6. Democratic Republic of Congo 4.8 6.5 7. Ethiopia 6.4 8.1 8. Mauritius 3.2 4.7 9. Cabo Verde 5.9 7.3 10. Niger 7.1 8.4
Business Insider
02-06-2025
- Business
- Business Insider
Top 10 African countries with the highest leap in GDP growth rate in 2025
In 2025, many African countries are experiencing slower real GDP growth compared to 2024, primarily due to global trade uncertainties and domestic fiscal challenges. Business Insider Africa presents the top 10 African countries with the highest GDP growth in 2025 compared to last year. This list is courtesy of the Africa Pulse report by the World Bank. Sudan ranks number 1 on the list. Despite these hurdles, some African countries are expected to experience stronger real GDP growth in 2025 compared to the previous year, indicating resilience and potential benefits. Despite these hurdles, some African countries are expected to experience stronger real GDP growth in 2025 compared to the previous year, indicating resilience and potential benefits. These countries' better development paths provide several benefits. First, faster economic growth indicates resilience, particularly in a global climate characterized by inflation, monetary tightening, and trade disruptions. Such success boosts investor trust and has the potential to enhance foreign direct investment. A country that continues to thrive while others stagnate attracts global investment, which can be reinvested in essential areas such as energy, education, healthcare, and transportation. Higher GDP growth may boost foreign direct investment, create more job opportunities, and provide governments with more budgetary room to invest in social services and infrastructure. Furthermore, strong economic growth can boost investor confidence and promote regional stability. For example, Uganda's anticipated 7.5% growth rate in 2025, up from 5.9% in 2024, is likely to be driven by advances in agriculture, infrastructure development, and oil exploration investments. Additionally, as economic activity increases, governments have more funds to implement social programs, pay down debt, and enhance their resilience to future economic shocks. These nations can serve as anchors of stability and economic power in their respective areas, affecting trade patterns and regional integration. In a year when many economies are stalling, African countries with strong growth are distinguishing themselves by establishing the basis for long-term benefits, increased global importance, and higher quality of life for their people. With that said, here are the African countries with the largest leap of real GDP growth this year, from last year, as per the Africa Pulse Report by the World Bank. Top 10 African countries with the highest leap in GDP growth rate in 2025 Rank Country Real GDP growth rate 2025 Real GDP growth rate 2024 1. Sudan 5.0% -13.5% 2. Zimbabwe 6.0% 2.0% 3. Zambia 6.2% 4.0% 4. São Tomé and Príncipe 3.1% 0.9% 5. Senegal 7.9% 5.8% 6. Mozambique 3.0% 1.8% 7. Guinea 6.7% 5.7% 8. Mali 4.8% 4.0% 9. Seychelles 3.1% 2.4% 10. Central Africa Republic 2.1% 1.5%
Business Insider
09-05-2025
- Business
- Business Insider
Top 10 African countries with the lowest cost of goods and services in 2025
When the Consumer Price Index (CPI) sees a significant shift, notably an increase, it causes ripples throughout a country's economy. The CPI, which measures the average change in prices paid by consumers for goods and services over time, is an important measure of inflation. A higher CPI often indicates overall price rises, resulting in a higher cost of living. Rent, food, utilities, healthcare, and transportation are all becoming more costly, pushing families to reduce discretionary spending or tap into savings. Conversely, a low CPI change means that prices for everyday necessities like food, transportation, and housing are not rapidly rising, giving consumers some breathing room, especially for households with fixed or modest incomes. This helps maintain purchasing power and makes it easier to save money or pay down debt. Businesses gain from minimal CPI changes because they enable greater cost control and financial planning. When prices remain steady, businesses may set long-term pricing, wages, and investment plans without worry of unexpected cost increases. In an atmosphere of low and steady inflation, savers are less likely to see their money's value decrease over time. This boosts trust in financial institutions, makes long-term deposits more appealing, and encourages healthy capital accumulation in the economy. Furthermore, people on fixed incomes, such as seniors and retirees, benefit greatly from minimal CPI changes. When inflation is low, their income retains more of its real-world worth, allowing them to buy basics without having to constantly adjust. For export-dependent countries, a low and consistent CPI change helps keep manufacturing costs under control. This permits their products and services to stay competitive on the global market, promoting trade and economic stability. With that said, here are the African countries with the lowest consumer price index change in 2025, as seen in the Africa Pulse Report by the World Bank. Top 10 African countries with the lowest cost of goods and services in 2025 Rank Country Consumer Price Index 2025 1. Seychelles 1.0% 2. Benin 1.5% 3. Cabo Verde 1.8% 4. Senegal 2.0% 5. Mauritania 2.0% 6. Gabon 2.3% 7. Mali 2.6% 8. Togo 2.6% 9. Central Africa Republic 2.7% 10. Equatorial Guinea 2.9%
Business Insider
06-05-2025
- Business
- Business Insider
Top 10 African countries with the highest cost of goods and services in 2025
When the Consumer Price Index (CPI) sees a significant shift, notably an increase, it causes ripples throughout a country's economy. For African countries, much like everywhere else, this inevitably affects the cost of goods and services. Business Insider Africa presents the top 10 African countries with the highest cost of goods and services in 2025. This list is courtesy of a report by the World Bank. South Sudan ranks number 1 on the list. A large increase in the CPI indicates that the cost of living is rising rapidly, a situation that has immediate and long-term implications for individuals, businesses, and governments. The most immediate result of a significant CPI shift is a loss of consumer buying power. As prices grow faster than wages, families may buy fewer products and services. This compression is especially difficult for low- and middle-income earners, who spend a bigger portion of their income on necessities such as food, shelter, and transportation. Because they spend a greater portion of their income on necessities like housing, food, and transportation, low- and middle-income workers are most affected by this strain. A greater cost of living is usually the result of price increases that are reflected in a higher CPI. Families are often forced to reduce discretionary spending or draw from savings as the cost of rent, food, utilities, healthcare, and transportation rises. In reaction to rising prices, workers frequently seek higher salaries to maintain their living standards. If employers approve these raises and pass the higher labor costs on to customers through higher prices, it can set off a wage-price cycle, maintaining and exacerbating inflation over time. Volatile or quickly rising CPI increases create uncertainty for businesses. Cost prediction and price setting become more complex, and as a result, businesses may delay investment choices or pass on inflationary pressures to customers. High inflation can also erode corporate confidence and stifle economic progress. Furthermore, inflation erodes the real worth of savings. If interest rates on savings accounts do not keep up with inflation, depositors will lose money in real terms. This is especially true for pensioners and those on fixed incomes, whose buying power slowly falls during times of high inflation. With that said, here are the African countries with the highest consumer price index change in 2025, as seen in the Africa Pulse Report by the World Bank. Top 10 African countries with the highest cost of goods and services in 2025 Rank Country Consumer Price Index 2025 1. South Sudan 179.8% 2. Sudan 89.4% 3. Zimbabwe 84.9% 4. Burundi 39.1% 5. Malawi 34.7% 6. Angola 25.0% 7. Nigeria 22.1% 8. Ethiopia 20.7% 9. Ghana 17.2% 10. Zambia 14.2%
