The African Development Bank (AfDB) has revised its 2026 economic growth forecast for North Africa downward to 3.6%, according to its latest African Economic Outlook report released on May 27, 2026. The revision reflects ongoing global economic uncertainties, including persistent inflation and geopolitical tensions.
In its previous forecast, the AfDB had projected a growth rate of 4.1% for the region. The adjustment is attributed to slower-than-expected recovery in key sectors such as tourism and manufacturing, as well as the impact of climate-related disruptions on agriculture.
Among North African economies, Morocco is expected to see growth of 3.2% in 2026, while Egypt's growth is projected at 4.5%. Algeria and Tunisia face more modest growth rates of 2.8% and 1.9%, respectively, due to fiscal constraints and structural challenges.
The AfDB emphasized the need for accelerated economic diversification and investment in renewable energy to mitigate external shocks. The bank also called for improved regional trade integration to boost resilience.
