Eastern Africa’s Balancing Act: High Growth, Tight Budgets, and Rising Uncertainty

This report reviews macroeconomic and social developments in Eastern Africa in 2025–2026. It examines economic growth, fiscal and monetary conditions, trade performance, private sector trends, official development assistance, poverty, and progress towards the Sustainable Development Goals. While the region maintains strong economic growth, it faces fiscal pressures, debt challenges, external shocks, social vulnerabilities, and growing uncertainty that may affect long-term sustainable and inclusive development.