AfDB Cuts Africa Growth Forecast Amid Global Trade Tensions

Africa’s economic output is expected to grow by 3.9 per cent this year, the African Development Bank said in its annual African Economic Outlook report on Tuesday, quickening from last year’s pace of 3.3 per cent.

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 united States.

The bank, which is Africa’s biggest development lender with $318 billion in capital, also cut its initial 2026 growth forecast by 0.4 percentage points to 4.0 per cent, 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.”

The turmoil is likely to curb global demand due to the resultant economic slowdown, curbing Africa’s exports to the rest of the world, the AfDB said.

AfDB Cuts Africa Growth Forecast Amid Global Trade Tensions is first published on The Whistler Newspaper