Of the 36 countries covered by an IMF and World Bank debt sustainability analysis, fourteen are considered high risk and seven are in debt distress.
African growth faltered last year as inflation hit a ten-year high. After the strong recovery of 2021 following the shock of the pandemic, the continent’s economies have had to face many external and internal difficulties, point out the new forecasts of the African Development Bank, published on Thursday. African GDP growth slowed last year to 3.8% after rebounding 4.8% in 2021.
AfDB President Akinwumi Adesina highlights the impact “geopolitical tensions, risks related to climate change and the prolonged effects of Covid“. Added to this is the tightening of global financial conditions. Rising interest rates, the appreciation of the US dollar and risk aversion are making the servicing of the debt of African countries more expensive. The debt ratio has increased significantly in recent years, especially in 2020 to cushion expenses due to the Covid shock, even if it has been less devastating than…
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