West Africa's economic growth has faced a setback, with output growth declining to 3.5% in 2023, down from 4.0% in 2022. This slowdown is primarily attributed to Nigeria's sluggish economic performance, which decelerated to 2.9% in 2023 from 3.3% in the previous year. The volatility in international oil prices has significantly impacted Nigeria's economy, which is a major player in the region [70722736].
In contrast, other countries in the region have shown stronger growth rates. Côte d’Ivoire recorded a robust growth of 6.2%, Benin at 6.4%, and Senegal at 4.6%. This disparity highlights the varying economic conditions across West Africa, with some nations managing to thrive despite the overall regional decline [70722736].
Inflation remains a pressing issue in West Africa, with the region recording a staggering 20.8% inflation rate. This is largely driven by extreme inflation in Sierra Leone (47.7%) and Ghana (39.2%). The economic instability has also led to a decrease in intra-African trade value, which fell to $190.9 billion, marking an 8.3% decline [70722736].
Foreign Direct Investment (FDI) has seen varied inflows across the continent, with both North and West Africa attracting $13 billion each in 2023. Notable contributions to FDI in North Africa came from Egypt ($9.8 billion) and Algeria ($1.2 billion), while West Africa saw significant investments from Côte d’Ivoire ($1.8 billion), Ghana ($1.3 billion), Nigeria ($1.9 billion), and Senegal ($2.6 billion) [70722736].
The overall economic landscape in Africa, particularly in West Africa, continues to be influenced by governance challenges, inflation, and external market conditions. As highlighted by recent analyses, the need for comprehensive reforms and strategic investments is crucial for fostering sustainable growth and improving living standards across the continent [69735d67].