The 2025 African Economic Outlook (AEO) report has been prepared against a backdrop of unprecedented global circum- stances. April 2025 saw seismic shifts in trade policies of major economies with signif- icant ramifications for the global trade order. Major development partners have announced significant aid cuts, triggered mainly by shift- ing domestic policy priorities. This action will undoubtedly create a funding squeeze for low-income countries, especially those in Africa, that heavily depend on international development assistance.