Publication date: 28 July 2026
Author: African Development Bank Group
Description: Real GDP growth moderated to 3.2% in 2025 from 4.9% in 2024, and is projected to slow further to 3% in 2026 due to the impact of the Middle East conflict, before improving to 3.8% in 2027. Annual average headline inflation increased to 3.7% in 2025 from 3.6% in 2024 driven by higher excise and customs duties on cars, and higher prices on healthcare, hotel and accommodation services as well as insurance and financial services. However, inflation was within the monetary policy target range of 2–5%, largely due to lower global commodity prices. The fiscal deficit widened to 9.3% of GDP in 2024/2025 from 8.5% in 2023/24, reflecting weaker than anticipated revenue performance. Gross public debt reached 88.6% of GDP in 2024/25, up from 83.4% of GDP in 2023/24, driven by persistent fiscal deficits.
