Africa to Lead Global GDP Expansion in 2025 Despite Macro Headwinds
TLDR
- Africa is expected to dominate the global growth leaderboard in 2025, with 13 of the top 20 fastest-growing economies located on the continent
- Growth is driven by infrastructure investments, demographic momentum, and improved governance support
- With a volatile post-conflict rebound, Libya is projected to grow by 17.3%, the fastest growing economy globally
Africa is expected to dominate the global growth leaderboard in 2025, with 13 of the top 20 fastest-growing economies located on the continent, driven by infrastructure investments, demographic momentum, and improved governance support, according to latest IMF projections.
Senegal (8.4%), Rwanda (7.1%), and Guinea (7.0%) lead Africa’s growth surge. Ethiopia (6.6%), Niger (6.5%), Benin (6.5%), Côte d’Ivoire (6.3%), and Zambia (6.2%) are also projected to outperform the global average of 2.8%.
With a volatile post-conflict rebound, Libya is projected to grow by 17.3%. Other strong performers include Uganda (6.1%), Zimbabwe, Tanzania, and Djibouti, all expected to expand 6.0%. Outside Africa, Guyana tops the global ranking with a 2025 growth rate of 10.3%, followed by oil resource-driven Asian economies including India (6.1%) and Mongolia (6.0%).
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Key Takeaways
Despite the growth figures, the IMF cautions that high growth rates in many African countries are starting from low economic bases. Public investment, commodity exports, and demographic expansion are key drivers, but inflation, debt, and climate risks persist. Many of these economies—like Niger and Guinea—depend heavily on extractives or agriculture, sectors vulnerable to global price swings and environmental shocks. Infrastructure and governance gaps remain. Still, the concentration of high performers in Africa points to shifting growth dynamics. Stronger regional integration, financial inclusion, and digital transformation could sustain momentum. To turn growth into sustainable development, the IMF stresses the importance of macroeconomic stability, local industrialization, and job creation. Countries like Senegal and Rwanda are increasingly seen as reform models, attracting investor interest. With global growth slowing, Africa’s performance offers both opportunity and urgency for policy coordination, investment, and multilateral support.
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