The latest report from the African Development Bank projects growth rates above 5% for the region in 2023.
Rabat – The African Development Bank (AfDB) has presented its latest Economic Outlook Report for East Africa in 2023, predicting that the region will lead the continent in terms of economic growth in the next two years.
According to the report published at the end of July, the bank forecasts a remarkable growth rate of more than 5% in East Africa, outpacing the rest of the continent. The report attributes this growth to the collective achievements of countries such as Rwanda, Uganda, Ethiopia, Kenya, Djibouti and Tanzania.
With projected growth rates of 5.1% in 2023 and 5.8% in 2024, East Africa stands as a beacon of economic progress amidst a dynamic and changing global landscape. The report highlights the significant role played by the services sector in driving expansion, contributing to around half of the region's economic growth in the previous year.
Tourism has emerged as a key driver of East Africa's economic success, fueled by nature and the region's rich cultural heritage.
The appeal of East Africa's picturesque landscapes, diverse wildlife and unique traditions has been attracting visitors from around the world, driving demand for hospitality, dining and entertainment services. This trend has resulted in increased income and job opportunities in the region, further improving its economic prospects.
While East Africa presents a promising economic outlook, the African Development Bank recognizes that the region faces internal and external risks that could impact its positive trajectory.
Global economic slowdowns, rising commodity prices and ongoing geopolitical conflicts, such as the Russian-Ukrainian conflict, are some of the concerns that could overshadow the region's growth potential, according to the report.
Article source: Morocco World news