Africa’s economic growth to rise to 4.0% in 2026 – UN report

Africa’s economic growth is projected to rise to 4.0 per cent in 2026 and 4.1 per cent in 2027, according to the United Nations World Economic Situation and Prospects 2026 (WESP 2026) Report.

The Economic Commission for Africa (ECA), in a statement on Tuesday, said the report was inaugurated at ECA’s headquarters in Addis Ababa.

According to the report, the projected improvement followed growth of 3.5 per cent in 2024 and 3.9 per cent in 2025.

It said this reflected improved macroeconomic stability in several large African economies, which was supporting investment and consumer spending.

East Africa is expected to lead regional growth with a projected 5.8 per cent expansion in 2026, while North Africa’s growth is forecast at 4.1 percent.

“West Africa is expected to grow by 4.4 per cent, Central Africa by 3.0 per cent, and Southern Africa by 2.0 per cent.

“More so, Africa’s average public debt-to-GDP ratio remains high at about 63 per cent in 2025, with interest payments absorbing nearly 15 percent of government revenues, constraining development spending,” it said.

It called for renewed multilateral action, stronger global coordination and reforms to the international financial architecture to address debt sustainability, climate shocks and development financing challenges.

The statement quoted Mr Stephen Karingi, Director of the Macroeconomics, Finance and Governance Division, ECA as saying that Africa’s outlook, though improving, remained fragile.

“In spite the positive outlook, high debt-servicing costs, limited fiscal space and volatile commodity prices continue to weigh on Africa’s prospects for inclusive and sustainable growth.

“The global output is forecast to grow by 2.7 per cent in 2026, slightly below the 2.8 per cent estimated for 2025 and well under the pre-pandemic average of 3.2 per cent.

“This is amid subdued investment and limited fiscal space,”Karingi said.

UN Secretary-General António Guterres said global economic, geopolitical and technological tensions were reshaping the world economy and increasing uncertainty.

“Many developing economies continue to struggle and progress towards the Sustainable Development Goals remains distant,” he said.

Presenting the report, Mr Hopestone Chavula, Officer-in-Charge of ECA’s Macroeconomic Analysis Section, said Africa’s recovery remained uneven across subregions.

“Africa’s growth recovery remains uneven across subregions.

“While East Africa continues to lead growth momentum, other parts of the continent are constrained by structural challenges and exposure to external shocks,” Chavula said.