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Africa faces sharper growth slowdown if Middle East conflict drags on, report warns - REUTERS
- Prolonged Middle East war disrupts trade, energy flows
- Food, fuel costs risk triggering continent-wide living crisis
- Higher prices aid some exporters, strain importers
TANGIER, Morocco (Reuters) – African economies face the risk of a sharper growth slowdown this year if the war in the Middle East drags on, with prolonged disruption to trade, energy and fertiliser supplies threatening to ripple across the continent, according to a report released on Thursday.
The report by two U.N. agencies, the African Union and the African Development Bank said African economies could lose 0.2 percentage points of GDP growth in 2026 if the conflict lasts more than six months.
“The longer the conflict lasts and the more severe the disruption to shipping routes and energy and fertiliser supplies, the greater the risk of a significant growth slowdown across the continent,” the report said. It was presented at the U.N.’s Economic Commission meeting in Tangier.
