OUAGADOUGOU: The International Monetary Fund (IMF) announced that the debt levels of African countries have stabilized in 2024, halting their previous growth trajectory and remaining steady at 58% of GDP. This development comes as part of an improving economic outlook for the continent, according to Antonio David, Deputy Division Chief of the African Department of the IMF.

According to Burkina Information Agency, David noted that while the debt levels remain high, the stabilization marks a positive shift as economic policies begin yielding beneficial results. He highlighted improvements in managing economic imbalances, including a decline in inflation rates across several African nations. David stated that around half of the countries have achieved more acceptable inflation levels, and a significant number of nations have taken steps toward better fiscal management, with about two-thirds implementing budget consolidation measures in 2023.

Despite these positive trends, challenges persist in certain regions.
David pointed out that approximately one-third of African countries, including Angola, Algeria, and Ethiopia, are still grappling with high inflation rates, often in the double digits. Looking ahead, Africa’s GDP is projected to grow by 4.4% in 2025. While this represents an improvement over the growth rates of 2024 and 2023, David cautioned that it remains insufficient to substantially reduce poverty or bridge the economic gap with wealthier nations and emerging markets.