According to projections, the Nigerian economy would contract in 2023, falling to 3.2% (from 3. 3%), and remain at this level in 2024. From 1. 9 percent, growth will drop to 1.4 percent in 2023 before rising to 1. 8 percent in 2024.
The paper claims that as governments grapple with rising prices, global headwinds are slowing down economic progress in Africa. Furthermore, the high debt levels and interest rates were pressuring African governments to make difficult choices in order to protect citizens’ employment opportunities, purchasing power, and development achievements.
The crisis in Ukraine has increased prices and decreased company investments and household spending, according to the research; which is a biennial review of the near-term regional macroeconomic outlook and economic development in Sub-Saharan Africa (SSA).
More than one in five Africans suffer from hunger, and 140 million more people than in 2021 were likely to endure extreme food insecurity in 2022, according to the Global Report on Food Crises 2022 Mid-Year Update. At 58.6% of GDP in SSA, debt is projected to remain high in 2022.
In 2021, African countries paid 16. 5% of their total revenue toward paying external debt, up from less than 5% in 2010.
In the area, eight of the 38 IDA-eligible nations are in debt difficulty, and another 14 are at very high danger of doing so.