World Bank Raises Growth Forecast for Nigeria and Ethiopia to 3.8%, Sub-Saharan Africa to Expand by 4.4%

The World Bank has increased its 2025 growth forecast for Nigeria and Ethiopia to 3.8%, with Sub-Saharan Africa expected to expand by 4.4%. The improved macroeconomic outlook in Africa is attributed to reduced inflation, stabilized currencies, and renewed investor confidence.

The Africa Pulse report highlighted the region's projected growth, emphasizing favorable conditions driving recovery in private consumption and investment. However, the Bank warned of risks from fiscal consolidation and persistent debt pressure.

Andrew Dabalen, the World Bank Chief Economist for Africa, noted significant inflation moderation and currency stability. Nigeria, Ethiopia, and Ivory Coast saw their growth forecasts upgraded, contributing to the positive regional economic outlook.

Despite the optimistic forecast, challenges like trade uncertainty and high debt burdens persist.