IMF downgrades Sub-Saharan economic growth to 3.3%

The International Monetary Fund (IMF) has downgraded Sub-Saharan Africa’s growth forecast, its World Economic Outlook report published Tuesday.

Growth in the region is expected to fall to 3.3% this year from 4% last year, before rebounding to 4% in 2024.

IMF said in July this year that the region’s economy will grow by 3.5% in 2023 and 4.1% next year.

Kenya’s growth will accelerate by 5% this year, the IMF said, up from 4.8% in 2022, despite its government cutting budgets amid soaring debt costs. Tanzania and Senegal are also set to see higher growth this year.

Africa’s oil producers like Angola, will have its economy at 1.3 percent from 3.5 percent in April, while Nigeria’s has been trimmed from 3.2% to 2.9%.

South Africa, whose economy is hobbled by record power cuts, will grow just 0.9% this year.

Russia’s invasion of Ukraine, after COVID-19 had already dealt the global economy a heavy blow, sent food, fuel and fertiliser prices soaring in Africa last year.

Weakening currencies, higher debt service costs and restricted access to capital markets added to debt pressures.

Annual inflation across the region, which has seen violent protests against the cost of living in countries including Ghana and Kenya, is expected to be 16.2% at the end of this year.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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