Economy in Africa in 2023: Things to watch out for

Abstract:

African economies will face turbulent times in 2023 as a range of internal and external shocks undermine the region’s growth prospects and threaten stability, but most of the region will weather the storm and continue to grow.

Resource-intensive economies and major commodity exporters will face challenging market conditions amid a global economic slowdown, but the outlook is far from gloomy as export prices remain reasonably high and competition remains intense for Africa’s resources.

Domestic price pressures will remain elevated—although inflation will ease back from the highs of 2022—and monetary policy will tighten across much of Africa, while the cost of international capital will rise substantially for some economies.

Major concerns surround the heavy burden of debt servicing, instability created by election cycles, geopolitics and war, as well as the lingering threat of food insecurity caused by conflict and adverse weather conditions.

Keyword: Africa, 2023, economy, digital, conflict.

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