“This evolution, below its 2015-19 average, is explained by the rise in commodity prices and the delay in rainfall,” notes the African Economic Outlook 2022 report, released on the sidelines of the Bank’s annual meetings, held in Accra.
In 2022, inflation is expected to exceed 4%, reflecting rising import prices, which also affects the energy bill and the current account deficit, the report says.
In line with the New Development Model (NMD) to increase human capital by 2035, social indicators are expected to improve as the Kingdom aims to expand social protection, job loss compensation, health insurance and family allowances by 2025, according to the AfDB.
The budget deficit is expected to reach 6.3% of GDP in 2022, the same source estimates.
In Africa, economic growth could slow down to 4.1% in 2022 and then settle at that level in 2023, according to the report.
“Africa’s real GDP growth is projected to decelerate to 4.1% in 2022, from 6.9% in 2021, due largely to the adverse effects from the lingering COVID-19 pandemic and the outbreak of the Russia–Ukraine conflict.”
Source: Agency Morocaine De Presse