{"id":14726,"date":"2024-10-28T06:28:00","date_gmt":"2024-10-28T02:28:00","guid":{"rendered":"https:\/\/gbc1.net\/?p=14726"},"modified":"2024-10-31T01:27:27","modified_gmt":"2024-10-30T21:27:27","slug":"imf-forecasts-sub-saharan-africa-to-grow-by-3-6-in-2024-and-4-2-in-2025","status":"publish","type":"post","link":"https:\/\/gbc1.net\/index.php\/2024\/10\/28\/imf-forecasts-sub-saharan-africa-to-grow-by-3-6-in-2024-and-4-2-in-2025\/","title":{"rendered":"IMF Forecasts Sub-Saharan Africa to Grow by 3.6% in 2024 and 4.2% in 2025"},"content":{"rendered":"\n

In its report on the Regional Economic Outlook for Sub-Saharan Africa (SSA), the International Monetary Fund (IMF) estimates the region is projected to grow by 3.6% in 2024 and is expected do a little better in 2025 with a growth rate of 4.2%.<\/p>\n\n\n\n

On 25 October 2024, Mr Abede Selassie, Director of African Department of the IMF, and Mr Kwabena Akuamoah-Boateng, IMF Communication Officer, presented the key findings of the report during a Press Briefing in Washington DC during the Annual Meetings of the International Monetary Fund (IMF) and World Bank (WB) Groups.<\/p>\n\n\n

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IMF Presents Key Findings of Economic Outlook on Sub-Saharan Africa During IMF-WB Annual Meetings 2024<\/figcaption><\/figure><\/div>\n\n\n

For 2024, the top 10 fastest growing economies in SSA are forecasted to be: (1) Niger 9.9%, (2) Rwanda 7.0%, (3) Benin 6.5%, (4) Cote d’Ivoire 6.5%, (5) Ethiopia 6.1%, (6) Mauritius 6.1%, (7) Senegal 6.0%, (8) Uganda 5.9%, (9) Equatorial Guinea 5.8%, and (10) The Gambia 5.8%. With Ethiopia in the Top 10, other large economies in SSA such as Kenya, Nigeria, and South Africa will register growth rates of 5.0%, 2.9%, and 1.1% growth respectively. <\/p>\n\n\n\n

From a regional bloc perspective, the ranking in descending order of growth rates is as follows: COMESA (SSA members only) 5.9%, WAEMU 5.7%, EAC-5 5.5%, ECOWAS 4.0%, SADC 2.8%, CEMAC 2.5%, and SACU 1.7%.<\/p>\n\n\n\n

Despite a relatively lacklustre performance compared to pre-pandemic years, SSA is still home to nine of the world’s twenty fastest-growing economies. Compared to emerging economies with similar population sizes, the Sub-Saharan Africa region is somewhat lagging behind: India is expected to grow by 7% in 2024 while China is forecasted to grow at 4.8%.<\/p>\n\n\n

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IMF Growth Projections in 2024 of Countries in Sub-Saharan Africa <\/figcaption><\/figure><\/div>\n\n\n

When it comes to public debt, the IMF notes that the Debt-to-GDP ratios are stabilizing at a median of 58%, albeit at a higher level compared to the pre-pandemic period. Therefore, access to financing remains a challenge with the cost of financing rather high. Nevertheless, the IMF has provided USD 60 billion in financing to this youthful region full of potential since 2020.<\/p>\n\n\n\n

Resource-rich countries with economies overly reliant on a single sector are highly vulnerable to price fluctuations on the global market and are not as resilient as those which have carried out a successful diversification strategy. <\/p>\n\n\n\n

It is also noted that countries which borrow for #CapEx<\/a> rather than #OpEx<\/a> tend to fare better at later stages. Infrastructure development is in fact an investment in the future and contributes to make nations more attractive for #FDI<\/a>.<\/p>\n\n\n\n

In conclusion, Africa countries must strike a delicate balance among three objectives: Macroeconomic Health, Development Imperatives and Socio-Political Expectations.<\/p>\n\n\n\n

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