This archive report was first published on 29 October 2019.
Published on October 29, 2019, the International Monetary Fund's Regional Economic Outlook report highlights the economic prospects for Sub-Saharan Africa.
The IMF forecasts growth in the region to remain at 3.2% in 2019 and rise to 3.6% in 2020, citing a challenging environment, output disruptions, and weaker growth in South Africa as key factors.
While growth is expected to vary across countries, non-resource intensive nations are projected to maintain strong growth rates of around 6%, with 24 countries benefiting from this trend. In contrast, resource-intensive countries are expected to experience slower growth of approximately 2.5%, affecting 21 countries.
The report also notes that inflation is expected to decrease as the Sub-Saharan Africa-wide debt burden stabilizes. However, increased public debt vulnerabilities and low external buffers will continue to limit policy space in several countries.
External headwinds, including rising protectionism, increased risk premiums, and a faster-than-anticipated slowdown in China and the euro area, have intensified. The region is also facing downside risks such as climate shocks, security challenges, and the potential spread of the Ebola outbreak beyond the Democratic Republic of the Congo.
To mitigate these risks and promote sustained growth, the IMF recommends three strategies: carefully calibrating the near-term policy mix, building resilience, and raising medium-term growth.
