West Africa delivered one of its strongest macroeconomic performances in recent years in 2025, with robust economic growth, easing inflation, narrowing fiscal deficits, and declining debt levels and an improving external position. However, the region's outlook for 2026 and 2027 has become more uncertain as geopolitical tensions, higher energy prices and food security concerns threaten to erode these gains, according to the 2026 West African Development Outlook, published by the ECOWAS Bank for Investment and Development.
Presenting the findings of the report, in a virtual briefing on 7th July, 2026, Dr Joseph Kwadwo Asenso, Head of the bank's Macroeconomic Rresearch and Sstudies Division, said the region entered 2026 from a position of strength, but warned that external shocks, particularly the conflict in the Middle East, have introduced fresh risks for the region.
"We recorded strong growth, inflation declined significantly, fiscal deficits narrowed, debt ratios fell and current account balances improved," he noted, warning however, that "while the outlook remains promising, it is also fragile because a number of external shocks could quickly reverse these gains if they are not managed well."
According to the report, which is titled "Distant tremors, familiar shocks," regional GDP growth reached 4.8% in 2025, with virtually all West African economies recording stronger growth than the previous year. Nigeria remained the region's largest economy, accounting for 41.2% of West Africa's nominal GDP, followed by Ghana (16.3%) and Côte d'Ivoire (14%), while the remaining 12 countries accounted for 28.5%.
Originally published by African Business.