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Top 10 African countries with the lowest GDP projections for 2025

Top 10 African countries with the lowest GDP projections for 2025

Economic forecasts for 2025 indicate that several African economies will experience low GDP growth, reflecting ongoing structural and external challenges. Despite government efforts to stimulate activity, economic momentum remains constrained by investment patterns and global conditions.

Real GDP growth, a key indicator of economic progress, influences investor confidence and policy decisions. While high growth signals stability and opportunities, low growth may deter investment in critical sectors like manufacturing, services, and infrastructure, further slowing economic expansion.

Read also: Top 10 African countries projected to be top earners in 2025

However, the IMF’s latest World Economic Outlook suggests GDP growth in sub-Saharan Africa may improve, contingent on effective policies and strategic reforms. The region’s economic trajectory will depend on how well countries navigate existing constraints and leverage emerging opportunities.

According to the IMF, here are the top 10 African countries with the lowest GDP projections for 2025

Equatorial Guinea is expected to experience the lowest real GDP growth rate at -4.7%, reflecting a continued contraction. The country’s economy has been affected by fluctuations in global oil prices and structural economic challenges.

South Africa, Africa’s second-largest economy, is projected to grow by 1.5%. Economic pressures, including energy shortages, policy uncertainty, and fiscal constraints, continue to limit growth prospects. Structural reforms are being discussed, but recovery remains slow.

Read also: Nigeria misses out as 10 African countries set for remarkable economic growth – IMF

Tunisia follows with an expected growth rate of 1.6%. The country has faced economic strain due to high debt levels, political instability, and a challenging business environment. Inflation and unemployment remain key concerns.

Lesotho, a landlocked country reliant on South Africa for trade and revenue from migrant labour remittances, is forecasted to grow by 2.3%. External dependencies and domestic economic conditions impact growth prospects.

Gabon is projected to grow at 2.6%. The country, a major oil producer, faces economic headwinds from fluctuating commodity prices and governance issues. Efforts to diversify the economy are ongoing.

Read also: Top 10 African countries with the lowest economic growth forecasts for 2024

Angola, another oil-dependent economy, is expected to record 2.8% growth. Economic diversification efforts continue, but challenges such as inflation, currency depreciation, and external debt remain.

The Central African Republic (CAR) is forecasted to grow by 2.9%. Political instability, security concerns, and limited infrastructure continue to hinder economic progress.

Algeria is projected to grow at 3.0%. The economy remains heavily reliant on hydrocarbons, and fiscal pressures are influencing government policy. Economic reforms are in progress but face implementation challenges.

Read also: Top 10 African economies forecasted with the highest GDP growth in 2025

Nigeria, the continent’s largest economy, is expected to grow by 3.2%. While the economy is showing signs of recovery, issues such as inflation, foreign exchange constraints, and insecurity affect growth.

São Tomé and Príncipe round out the list with a projected growth rate of 3.3%. The island nation relies on agriculture and tourism, but external economic factors impact its growth trajectory.

Chisom Michael is a data analyst (audience engagement) and writer at BusinessDay, with diverse experience in the media industry. He holds a BSc in Industrial Physics from Imo State University and an MEng in Computer Science and Technology from Liaoning Univerisity of Technology China. He specialises in listicle writing, profiles and leveraging his skills in audience engagement analysis and data-driven insights to create compelling content that resonates with readers.

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