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Analysis by Region - Africa

Publisher Oxford Economics
Published Sep 18, 2025
Length 7 Pages
SKU # OFE20418487

Description

High-frequency indicators and central bank estimations of a positive output gap signal that the demand-side economy is strengthening. The firmer demand-side is augmenting positive supply-side movements, supporting our GDP growth forecast of 5.6% for 2025. Ongoing improvements in the extractive sector should lift copper sector performance in the coming months, while energy sector reforms and expanded non-hydro power projects boost operational prospects. Moreover, we anticipate that purchasing power will strengthen in the coming months, providing strong demand-side momentum going into 2026. That said, fiscal support to GDP growth is expected to reduce further in the coming months due to austerity demands, unless the government ramps up capex and fiscal discipline weakens in the lead-up to the 2026 elections.

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