Africa’s quarterly economic performance and outlook January–March 2023: Expenditure matters for growth and debt sustainability

The present report provides an analysis of the macroeconomic developments from January to March 2023 and an outlook for the continent, in relation to economic growth, inflation and fiscal and monetary policies. The report provides an assessment of the composition of government expenditure in Africa, revealing that African Governments have a higher level of consumption expenditure and a lower level of capital expenditure than developed and emerging economies, which could hinder growth and debt sustainability, especially in the least developed countries in Africa. Policy recommendations based on the assessment are provided in the last section of the report.