28-05-2025
AfDB cuts Africa's 2025 growth forecast on trade tariffs uncertainty
Africa's economic output is expected to grow by 3.9% this year, the African Development Bank (AfDB) said in its annual "African Economic Outlook" report on Tuesday, quickening from last year's pace of 3.3%.
However, this year's forecast — which covers economies of all its 54 member states — represents a 0.2 percentage points downgrade from the bank's initial forecast, the development lender said during its annual meeting in Ivory Coast, mainly due to the shocks caused by new trade tariffs imposed by the US.
The bank, which is Africa's biggest development lender with $318bn (R5.59bn) in capital, also cut its initial 2026 growth forecast by 0.4 percentage points to 4.0%, citing the same uncertainty from trade tariffs.
"Since January 2025 the world has experienced additional shocks, exacerbating an already complex global macroeconomic landscape," the AfDB said in the report.
"These shocks include a plethora of new tariffs imposed by the United States and retaliatory measures announced and implemented by its trading partners."
