Emerging Economic Powhers in Sub-Saharan Africa to Keep an Eye on in 2023 - IMF Predictions
Africa's economic recovery from the COVID-19 pandemic has been hit by several internal and external shocks, including adverse weather conditions and the Russian invasion of Ukraine, making things tougher with increasing inflation and borrowing costs. But Africa still stands strong, with some of the world's fastest-growing economies.
According to the International Monetary Fund's (IMF) recent World Economic Outlook, Angola, Ethiopia, Nigeria, Kenya, and South Africa will be amongst the fastest-growing economies globally. Here's a quick look at these powerhouses:
- Angola: With its rich oil resources and a significant diamond production, Angola is set to reclaim its spot as the third-largest economy in sub-Saharan Africa. The IMF estimates an impressive 8.6% growth this year, reaching a staggering US$135 billion.
- Ethiopia: Heading towards replacing Kenya as the fourth-largest economy in sub-Saharan Africa, Ethiopia is gearing up with the easing of armed conflict and ambitious economic reforms. The IMF projects a whopping 13.5% growth this year, reaching US$126.2 billion.
- Nigeria, as the largest economy on the continent, is maintaining its top spot in sub-Saharan Africa's economic rankings, with an expected GDP of US$574 billion this year, according to the IMF.
- South Africa, the second-largest economy in sub-Saharan Africa, is projected to retain its position with a GDP of US$422 billion this year, according to the IMF.
Kenya is not far behind, projected to grow at a slower rate due to COVID-19 aftershocks, drought, election jitters, and disruptions in global supply chains. The IMF forecasts US$117.6 billion for Kenya's GDP this year, but it's still one of the top economies to watch in the region.
When looking beyond 2023, the IMF's projections for 2024 show impressive figures for the Democratic Republic of Congo (6.5%), Côte d’Ivoire (6.0%), and Uganda (6.3%), Ethiopia (potentially 6.6%), and Tanzania (6.0%).These rates far outpace the overall sub-Saharan Africa average, which is projected to be between 3.5-3.7% for 2025, depending on the source.
Business growth in Africa is promising, with Angola, Ethiopia, Nigeria, Kenya, and South Africa expected to be among the fastest-growing economies worldwide. The International Monetary Fund (IMF) projects Angola to reclaim its position as the third-largest economy in sub-Saharan Africa with an estimated growth of 8.6% and a GDP of $135 billion. Ethiopia, heading towards becoming the fourth-largest economy, is projected to achieve a staggering 13.5% growth, reaching US$126.2 billion. Nigeria, the largest economy on the continent, is expected to maintain its top spot with a GDP of US$574 billion. South Africa, the second-largest economy, is forecast to retain its position with a GDP of US$422 billion. While Kenya is projected to grow at a slower rate, it remains one of the top economies to watch. Additionally, the IMF anticipates impressive growth for countries like the Democratic Republic of Congo, Côte d’Ivoire, Uganda, Ethiopia, and Tanzania beyond 2023.
