The International Monetary Fund (IMF) projects that the global economy will reach $124 trillion in 2026, reflecting modest growth amid rising protectionism and geopolitical fragmentation.
In its October 2025 World Economic Outlook (WEO), the IMF highlighted slowing growth across major economies and noted risks such as tech-stock repricing and weakening institutional independence, which could affect policymaking.
As a result, global growth is projected to slow from 3.3 percent in 2024 to 3.2 percent in 2025, and further to 3.1 percent in 2026. Advanced economies are expected to expand by around 1.5 percent, while emerging markets and developing economies may grow slightly above 4 percent.
Inflation is projected to ease globally, though the United States may experience above-target levels, while other regions remain more subdued.
The U.S. economy continues to dominate, supported by a relatively resilient labour market and sustained consumer spending, although growth projections have been revised downward amid trade tensions and rising consumer prices.
Meanwhile, China’s GDP is projected at $20.7 trillion, about 35 percent below the U.S. total and roughly three times larger than Germany’s. Structural factors, including an aging population and a sluggish property market, are expected to slow China’s growth to around 4 percent, marking its slowest multi-year pace in four decades.
Additionally, tariffs on Chinese goods are anticipated to affect the country’s export sector.
Africa’s Growing Economic Role
Africa is attracting increasing global attention, not only for its vast natural resources but also for its expanding role in global trade realignment. The continent’s GDP is projected to reach approximately $3.32 trillion in 2026, reflecting both foreign investment inflows and gradual economic recovery.
Investment flows into Africa have been significant this year: in the first half of 2025, China signed $30.5 billion in construction contracts with African nations, including railways in Nigeria and ports in Egypt nearly five times the amount recorded in the same period last year, according to Griffith University and the Green Finance & Development Center. Additional investments are expected from Europe, the Middle East, and Asia as global trade alliances evolve.
Risks and Challenges
Despite promising growth, Africa faces notable challenges. The continent confronts a $108 billion annual infrastructure financing gap, according to the African Development Bank. Other challenges include policy uncertainty, skill shortages, high youth unemployment, and rising debt burdens.
Top 10 African Largest Economies in 2026
Breakdown of the projected 2026 GDP for Africa’s largest economies, according to IMF data in current-dollar terms:
The ranking illustrates Africa’s economic diversity. North and Southern African nations have the largest economies, while East and West African countries are experiencing steady growth despite structural challenges. The continent presents both opportunities and complexities, requiring careful planning and long-term strategies to support sustainable economic development.
