According to the United Nations' *World Economic Situation and Prospects 2026* report, Ethiopia and Kenya are set to lead Africa's economic expansion in 2026, with East Africa expected to become the fastest-growing region on the continent. The UN projects that Africa's overall economic growth rate will rise to 4.0% in 2026 and further increase to 4.1% in 2027, surpassing the 3.5% in 2024 and 3.9% in 2025. This optimistic outlook is primarily driven by the strong performance of Ethiopia and Kenya, benefiting from regional integration initiatives and the continued expansion of renewable energy. The report forecasts that East Africa's economic growth rate will reach 5.8% in 2026, up from 5.4% in 2025, further solidifying its position as the fastest-growing subregion in Africa. It notes that improvements in macroeconomic stability across several major economies are key factors behind the accelerated growth. Despite the positive outlook, the UN warns that high debt repayment costs, limited fiscal space, and persistent food inflation continue to undermine prospects for inclusive and sustainable development.
