Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

Here is the list of Providus Bank Branches in Lagos

A little over two years after it was granted a commercial banking license with regional authorization by the Central...

List of latest Ponzi schemes in Nigeria

These are the latest and past Ponzi scams and shady investment products that Nigerians are putting their monies into. What...

Growth in sub-Saharan Africa is expected to pick up, though at a slower pace than previously expected. This revision reflects a more challenging external environment, continued output disruptions in oil-exporting countries, and weaker-than-anticipated growth in South Africa.

Overall, growth is projected to remain at 3.2 percent in 2019 and rise to 3.6 percent in 2020, the IMF said in its latest Regional Economic Outlook: Sub-Saharan Africa.

The challenge for the region is to boost growth to create jobs for the growing labour force while protecting against debt vulnerabilities and risks from a difficult global environment. “In this context, the focus should be on continuing fiscal reforms to reduce debt vulnerabilities, and implementing structural reforms to boost investment and competitiveness, including by fully operationalizing the African Continental Free Trade Area,” said Abebe Aemro Selassie, Director of the IMF’s African Department.

Here are six charts that tell the story.

- Advertisement -

The growth outlook for the region remains splitNon-resource-intensive countries are expected to grow at about 6 percent, almost three times faster than resource-intensive countries. As a result, 24 predominantly non-resource-intensive countries, home to about 500 million people, will see their per capita income rise faster than the rest of the world. On the other hand, 12 countries are expected to experience negative per capita growth rates in 2019.

Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa

Growth in the region has been revised down, partly due to a challenging global environment. Rising trade and geopolitical tensions have increased uncertainty, resulting in weak global economic activity and a significant decline in trade volumes. The slowdown of key trading partners is also impacting sub-Saharan Africa, with growth revised down for about two-thirds of countries in the region.

Read Also:  Road accidents statistics worldwide: a 2019’s report on mortality rate per country

Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa

- Advertisement -

Fiscal space remains limited. Although the average debt burden is stabilizing, elevated debt levels and low external buffers will continue to limit policy space in several countries. Overall, there is little room for fiscal policy to counter external headwinds, as most countries will need to continue planned fiscal adjustment.

Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa

In some countries, monetary policy can help cushion against external headwinds. As fiscal space remains limited, the task of supporting growth in the face of a difficult global environment will fall predominantly on monetary policy. In particular, monetary policy may be eased in countries where inflation pressures are muted and growth is below potential.

Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa

- Advertisement -

In the medium term, structural reforms are key to raising growth and creating jobs for the expanding labour force. Starting in the 1980s, significant progress was made in implementing reforms in the region, including trade and financial market liberalization, as well as product market reforms. This period also saw sustained growth in sub-Saharan Africa. The reform momentum, however, has slowed down over the last decade.

Read Also:  Airtel Announces Commencement Of ‘Five Days Of Love’ Annual Initiative

Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa

Enhancing market competition can significantly improve economic performance in sub-Saharan African countries. Competition among firms remains relatively low in sub-Saharan Africa compared to other regions. Boosting competition requires holistic reforms encompassing an effective competition policy framework, openness to trade and foreign direct investment, and business regulations and macroeconomic policies that create an even playing field among firms.

Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa

- Advertisement -
Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan AfricaSix Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan AfricaSix Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa

Latest News

Vingroup to give 2,400 ventilators to Russia, Ukraine and Singapore

HANOI, VIETNAM - Media OutReach - July 11, 2020 - On July 10, 2020, VinGroup fulfilled its obligations to deliver ventilators...

Nippon Paint Reveals the Winners of the Asia Young Designer Awards 2019/20

Functional and sustainable winning entries of the year celebrated virtually with Nippon Paint SINGAPORE - Media OutReach - 11 July 2020 - Following the 13th instalment of...

COVID-19: Every Nigerian must take Responsibility, says Sanwo-Olu

Lagos State Governor, Mr. Babajide Sanwo-Olu on Saturday charged all Nigerians to take responsibility as the nation joins the global community in the fight...

FGN Bond Yields Moderate for Most Maturities Tracked on Sustained Demand Pressure

In the just concluded week, the values of FGN bonds traded at the over-the-counter (OTC) segment appreciated further for most maturities tracked amid demand...

FG Signs N10.8trn Budget amid Threats of Revenue Shortfall…

President Muhammadu Buhari on Friday, July 10, 2020, signed the revised N10.8 trillion 2020 national budget into law. A breakdown of the spending plan...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Six Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan AfricaSix Charts On How Elevated Global Uncertainty Is Creating Challenges For Sub-Saharan Africa