Addis Ababa, January 22, 2026 (FMC) – East Africa is set to spearhead Africa’s economic growth as the continent’s economy is projected to expand by 4.0 per cent in 2026 and 4.1 per cent in 2027, according to the World Economic Situation and Prospects (WESP) 2026 – Africa Regional Outlook, launched today by the United Nations Economic Commission for Africa (UNECA) in partnership with the United Nations Department of Economic and Social Affairs (UN DESA).
The report highlights that the subregion’s momentum, driven by strong performances in Ethiopia and Kenya, regional integration, and renewable energy expansion, will position East Africa as the continent’s growth engine, even as other regions face structural vulnerabilities and external shocks.
The launch event at the UN Conference Centre in Addis Ababa brought together government officials, development partners, and media representatives to discuss Africa’s economic trajectory and the policy measures necessary for sustainable and inclusive growth.
The flagship report provides a comprehensive assessment of global and regional economic developments, emphasizing opportunities, challenges, and strategic priorities for Africa in a context of subdued global growth, high debt burdens, limited fiscal space, and persistent inflation.
The event began with an opening address by Mr. Stephen Karingi, Director of the Macroeconomics, Finance and Governance Division at UNECA, who underscored the significance of the WESP 2026 report as a tool to guide economic policy, investment decisions, and long-term planning across the continent.
This was followed by a detailed presentation from Hopestone Kayiska Chavula, Officer-in-Charge of the Macroeconomic Analysis Section, Macroeconomics and Governance Division, UNECA, who highlighted the report’s findings on Africa’s trade performance, fiscal constraints, debt sustainability, and the importance of policy coordination to achieve inclusive growth.
The report notes that Africa’s trade rebounded in 2025, supported by strong exports of precious metals and agricultural commodities, while the continent’s exposure to global trade tensions remains limited thanks to diversified export partnerships. However, risks persist, including the expiration of the African Growth and Opportunity Act (AGOA), new tariff measures, and uneven implementation of the African Continental Free Trade Area (AfCFTA).
Globally, growth is projected at 2.7 per cent in 2026, below the pre-pandemic average of 3.2 per cent. Geopolitical tensions, trade realignments, and climate-related shocks continue to affect developing economies, highlighting the need for coordinated multilateral action and strategic fiscal and monetary policies to ensure sustained growth and stability.
Produced by UN DESA in collaboration with UNCTAD and the five UN regional commissions—including UNECA, UNECE, ECLAC, ESCAP, and ESCWA—with contributions from the UN World Tourism Organization (UNWTO), the WESP 2026 report serves as a vital resource for policymakers, development partners, and stakeholders shaping Africa’s economic strategies.