IMF forecasts 4.5% African growth despite energy crisis from Iran war
Summarised from 2 outlets · Updated 15 Oct, 13:32 · Archive
African economies have weathered the energy crisis from the Iran war well, the IMF said, but falling aid leaves them vulnerable.
The head of the International Monetary Fund's Africa department said Thursday that African economies have managed to weather the energy crisis brought on by the Iran war fairly well. The IMF forecasts growth in Africa at 4.5% this year, slightly higher than its earlier estimate, and expects recovery to 5% in 2027.
Development assistance for the continent fell sharply last year and is forecast to fall another 12% this year, Zeine Zeidane said at a meeting of the IMF and World Bank in Bangkok. 'That leaves the region with little room to absorb another shock,' he told reporters. 'Renewed disruption to energy supplies, a sharp increase in global risk aversion, or a strong El Niño could all intensify pressures.'
Persisting conflict and insecurity pose additional drags on the regional economy and threaten food security in some regions. Many African nations have enacted reforms to improve their economic resilience, and some are benefiting from surging prices for their exports of critical minerals used in advanced technologies such as artificial intelligence. Zeidane said the IMF has urged those countries to use those windfalls wisely and adopt AI to improve their competitiveness.
How it is being reported
- IMF says African economies performing well despite shocks from the Iran warThe head of the International Monetary Fund’s Africa department says African economies have managed to weather the energy crisis brought on by the Iran war.News4Jax · 15 Oct, 13:05
- IMF says African economies performing well despite shocks from the Iran warThe head of the International Monetary Fund’s Africa department says African economies have managed to weather the energy crisis brought on by the Iran war.Clickorlando · 15 Oct, 13:05
In this story: International Monetary Fund · Africa · Zeine Zeidane · Bangkok · Guinea
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