World Bank Cuts Africa Growth Outlook, Urges Policy Reforms

World Bank Cuts Africa Growth Outlook, Urges Policy Reforms

The World Bank has warned that Sub-Saharan Africa’s economic recovery is slowing, with rising risks threatening growth across the region. In its latest Africa Economic Update, the bank said it has reduced its 2026 growth forecast by 0.3 percentage points compared to its October 2025 projection. However, growth is still expected to remain at 4.1

The World Bank has warned that Sub-Saharan Africa’s economic recovery is slowing, with rising risks threatening growth across the region.

In its latest Africa Economic Update, the bank said it has reduced its 2026 growth forecast by 0.3 percentage points compared to its October 2025 projection. However, growth is still expected to remain at 4.1 per cent in 2026, unchanged from 2025.

The report cited ongoing global pressures, including tensions in the Middle East, which continue to push up the cost of fuel, food, and fertilisers. These challenges, alongside tighter financial conditions, are expected to increase inflation and disrupt economic activity.

Inflation in Sub-Saharan Africa is projected to rise to 4.8 per cent in 2026, with low-income households likely to be the most affected.

The bank also highlighted rising public debt as a major concern, noting that debt servicing has significantly increased, reducing governments’ capacity to invest in infrastructure and social services.

It added that with more than 620 million people expected to join Africa’s labour force by 2050, there is an urgent need for policies that support job creation and drive economic transformation.

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