In this article, we discuss 5 fastest growing economies in Africa. If you want to see more of the fastest growing economies in Africa, go directly to the 12 Fastest Growing Economies in Africa.
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5. Eswatini
GDP growth in 2021 according to World Bank: 7.43%
Eswatini is in Southern Africa that shares its border with both South Africa and Mozambique. Because of its strong economic links to South Africa, Eswatini depends on that country for around 85% of its imports and 60% of its exports. Eswatini’s economy saw a robust recovery in 2021, with real GDP growth predicted to have increased to 7.4% from a 1.9% decline in 2020. Lockdown restrictions were relaxed in 2021, which aided export-oriented industries and a strong rebound in foreign demand in major export markets.
4. Kenya
GDP growth in 2021 according to World Bank: 7.52%
Next on our list of the fastest growing economies in Africa is Kenya. The country’s economy saw broad-based growth averaging 4.8% per year from 2015 to 2019, which greatly decreased poverty. The COVID-19 pandemic shock that slammed the economy hard in 2020 caused disruptions in travel, tourism, and urban services. Fortunately, the agriculture industry, which is a pillar of the economy, maintained its resilience, assisting in keeping the decline in GDP to a mere 0.3%. Kenya’s economy expanded by 6.7% in 2021, mostly due to the demand-side factor of private consumption and the supply-side factor of services, both of which benefited from favorable policies and loosened COVID-19 regulations.
3. Rwanda
GDP growth in 2021 according to World Bank: 10.88%
After COVID-19 caused the economy of Rwanda to shrink by 3.4% in 2020, sustained fiscal stimulus, an accelerated vaccination programme, relative easing of COVID-19 restrictions, and a rebound in global demand helped GDP growth reach 10.9% in 2021. Expansion in services (12%), industry (13%), and agriculture (6%), respectively, were the growth drivers. Following a 5.9% decline in 2020, the GDP per capita recovered to increase 7.4% in 2021. Rwanda’s GDP growth is expected to be 6.9% in 2022 and 7.9% in 2023.
2. Botswana
GDP growth in 2021 according to World Bank: 11.36%
Following a decline of 8.7% in 2020 due to COVID-19 limitations, Botswana’s GDP increased by 11.36% in 2021. With the revival of the world diamond market, mining production increased. The production from industries other than mining also increased, notably in public administration and military, building, wholesale, and retail. As the negative effects of COVID-19 on net exports subsided and state spending increased because of the pandemic, aggregate demand increased in 2021.
1. Libya
GDP growth in 2021 according to World Bank: 31.37%
The economic recovery of Libya is gaining traction thanks to a significant rise in oil production in 2021. After a crippling contraction of 23.93% in 2020 due to a number of shocks, including political unrest, a drop in oil prices, and the rapid spread of COVID-19, the GDP of Libya has increased by a staggering 31.37% in 2021.
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