IMF raises Africa growth outlook, warns of shrinking aid

The International Monetary Fund on Thursday welcomed African economies' resilience in the face of various crises, including the energy shocks brought on by the U.S.-Iran war. The IMF raised its growth forecast for sub-Saharan Africa to 4.5 percent this year, recovering to 5 percent in 2027. The rise in global oil and gas prices since February has left several African countries particularly exposed to the crisis, as they are net importers of these commodities years. Still, many African nations have enacted reforms to improve their economic resilience. Some are benefiting from surging prices for their exports of critical minerals used in advanced technologies like artificial intelligence. But despite these positive developments, IMF Africa Director Zain Zidan says the continent remains vulnerable to future shocks. He pointed to the decline in development assistance, which fell sharply last year and is forecast to fall another 12% this year. Zidan said Africa has little room to absorb another shock. He warned against pressures brought on by climate phenomena like El Niño or potential health risks.