IMF says African economies performing well despite shocks from the Iran war

BANGKOK (AP) — African economies have managed to weather fairly well the energy crisis brought on by the Iran war, but a decline in aid has left the continent vulnerable to future shocks, the head of the International Monetary Fund’s Africa department said Thursday.The IMF forecasts growth in Africa at 4.5% this year, slightly higher than its earlier estimate, recovering to 5% in 2027. But development assistance for the continent fell sharply last year and is forecast to fall another 12% this year, Zeine Zeidane said at a meeting of the IMF and World Bank in Bangkok.“That leaves the region with little room to absorb another shock. Renewed disruption to energy supplies, a sharp increase in global risk aversion, or a strong El Nino could all intensify pressures,” he told reporters.Persisting conflict and insecurity are other drags on the regional economy, posing a threat to food security in some regions.“Overall risks remain firmly tilted to the downside and the challenges are significan