The International Monetary Fund (IMF) has projected growth in sub-Saharan Africa to rise from 3.4 per cent in 2023 to 3.8 per cent in 2024, with nearly two-thirds of countries anticipating higher growth.
This is contained in the IMF’s latest regional economic outlook for Sub-Saharan.
Economic recovery is expected to continue beyond this year, with growth projections reaching 4.0 per cent in 2025.
The Fund pointed out that after four turbulent years, the outlook for sub-Saharan Africa is gradually improving.
Additionally, it said, “Inflation has almost halved, public debt ratios have broadly stabilized, and several countries have issued Eurobonds this year, ending a two-year hiatus from international markets.”
However, the IMF stated that not all is favourable as the funding squeeze persists as the region’s governments continue to grapple with financing shortages, high borrowing costs, and impending debt repayments.
According to the IMF, risks to the outlook remain tilted to the downside, as the region continues to be more vulnerable to global external shocks, as well as the threat of rising political instability, and frequent climate events.
“Three policy priorities can help countries adapt to these challenges: improving public finances without undermining development; monetary policy focused on ensuring price stability; and implementing structural reforms to diversify funding sources and economies,” the IMF further stated.
Amid these challenges, the IMF highlighted that sub-Saharan African countries will need additional support from the international community to develop a more inclusive, sustainable, and prosperous future.
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