North African countries are projected to see a slight increase in economic growth to 4.6% in 2023 and 4.4% in 2024, and should make green growth an urgent priority, according to the latest North Africa Economic Outlook report published by the African Development Bank (AfDB).

In the report titled “Mobilizing Private-Sector Financing for Climate and Green Growth in Africa”, the AfDB says that economic growth in the region is essentially driven by the service sector, particularly trade and tourism.

The North African economies expanded moderately by 4.1% in 2022 compared with the growth of 5.4% in 2021, though there are significant disparities between countries in terms of the rate of growth. Inflation in the region is set to climb to 14.2% in 2023, before falling to 6.9% in 2024, according to the AfDB’s latest repot.

The pan-African institution also recommends coordinating monetary and budgetary policies to keep the region’s economies afloat, tackle higher inflation and protect small businesses and populations through targeted public spending.

Similarly, maintaining and supporting food security in the region is a critical objective. The AfDB also calls on North African countries to invest in agriculture, in particular by developing improved varieties alongside water and soil management strategies. The region must strengthen its resilience, especially regarding linkages between the energy transition, water management and food security, according to the AfDB’s report.

The North Africa Economic Outlook report, published since 2003, is one of the AfDB Group’s flagship publications.

Source: The North Africa Post

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