GITFiC has unveiled its inaugural report on key economic indicators across the African continent, covering each of the 54 countries. This extensive analysis provides data on essential metrics, including IMF status, lending rate, inflation rate, unemployment rate, GDP, GDP growth, GDP per capita, gross external debt, total debt, and population.
Comprehensive Economic Indicators
GITFiC’s data collection utilized resources from the World Bank, International Monetary Fund, AlFred Economic Data, Trading Economics, Statista, OECD, and the United Nations, creating a robust and credible dataset. Through a detailed methodology, the organization claims a 92.7% accuracy rate across the compiled indicators.
- IMF Status: The report provides insights into each country’s engagement with the IMF, aiming to shed light on economic stability and fiscal policies across Africa.
- Lending Rate: This crucial metric affects the business environment by impacting borrowing costs. Lending rates were calculated using the formula: Interest = Principal x Rate x Tenure.
- Inflation Rate: Reflecting the rate of price increases, inflation was assessed based on a projected rate for 2024, adjusted monthly, with an inflation calculator for cross-country comparison.
- Unemployment Rate: GITFiC applied international labor standards to gauge each country’s labor market health, using data from the United Nations’ International Labour Organization (ILO).
- GDP: GDP measures a nation’s total economic output. GITFiC utilized the expenditure approach for calculating nominal GDP and further determined real GDP growth for each country.
- GDP Growth Rate: This percentage-based indicator reveals the year-over-year economic growth or contraction.
- GDP Per Capita: A measure of the economic output per individual, GDP per capita was determined by dividing each country’s real GDP by its population.
- Gross External Debt: Calculated as the amount owed by a country to foreign creditors, this indicator reflects economic reliance on international lending.
- Total Debt-to-GDP: This ratio compares public debt to GDP, offering insight into each country’s ability to manage debt obligations.
- Population: Population data, sourced from the World Bank, United Nations, and national census offices, served as the base for various other indicators.
Key Highlights
- Africa’s Total Indebtedness: $1.215 trillion.
- Africa’s Accumulated External Debt: $722 billion.
- Average Inflation Rate: 12.2%.
- Average Lending Rate: 19.5%.
- Average Economic Growth Rate: 3.8%.
- Total Population: 1.34 billion.
- Total Unemployment Rate: 7.7%.
Major Creditors Across Africa
- Multilateral Institutions: Including the IMF, World Bank, African Development Bank (AfDB), and the European Investment Bank (EIB).
- Bilateral Creditors: Notably, China, France, Germany, Japan, the UK, and the USA.
- Commercial Creditors: Primarily private banks and bondholders.
- Other Creditors: Includes the Paris Club, non-Paris Club creditors, and Arab financial institutions.
Through this initiative, GITFiC aims to inform stakeholders, businesses, and the public on the economic status and potential of African nations, further supporting a call for a Global Debt Initiative to stabilize and foster economic growth across the continent.