\nThe International Monetary Fund (IMF) says economic growth in Sub-Saharan Africa (SSA) is projected to rise from 3.4 per cent in 2023 to 3.8 per cent in 2024.<\/p>\n
Abebe Selassie, Director, African Department, IMF, said this at a news briefing on the IMF’s Regional Economic Outlook for SSA titled ‘A Tepid and Pricey Recovery’ on Friday in Washington DC.<\/p>\n
Selassie said economic recovery was expected to continue beyond 2024, with growth projections reaching 4.0 per cent in 2025.<\/p>\n
‘After four challenging years and multiple shocks, SSA’s economy appears to be on the mend.<\/p>\n
‘We expect growth to accelerate to 3.8 per cent from 3.4 per cent last year, after peaking at almost 10 per cent in late 2022.<\/p>\n
‘We are also seeing inflation having been halved in the early months of this year, thanks to decisive actions by central banks.<\/p>\n
‘This includes slower food price increases, a positive development in a region where the cost-of-living crisis has been acute in recent years.’<\/p>\n
He further said fiscal consolidation efforts were
\nstarting to pay off, with the median public debt stabilising at around 60 per cent of Gross Domestic Product(GDP), halting a 10-year upward trend.<\/p>\n
‘ With global financial conditions easing, a few countries have been able to return to international markets, ending a two-year hiatus.’<\/p>\n
The director said though the signs were encouraging, the region was not out of the woods.<\/p>\n
Selassie said far too many countries still faced a funding squeeze, adding that their borrowing costs were high and funding sources curtailed.<\/p>\n
‘Government interest payments now account for about 12 per cent of revenues, more than double the level a decade ago, and official development assistance concessional financing has become much more scarce.<\/p>\n
‘What does this mean for countries? It means much-needed funds are being diverted from spending on investment development to interest payments, with consequences for the region’s growth potential and its ability to withstand future shocks.’<\/p>\n
He said sustaining reforms would be important for macr
\noeconomic conditions to continue to improve.<\/p>\n
Selassie said this would ensure that countries in the region could build their resilience to shocks, generate jobs, diversify their economies, and improve living standards.<\/p>\n
The director said three policy priorities could help countries in the region adapt to the challenges<\/p>\n
‘First, to continue to improve public finances, with an emphasis on domestic revenue mobilisation.<\/p>\n
‘This will help meet the region’s vast development spending needs in the context of scarce concessional financing and high borrowing costs.’<\/p>\n
He said the second policy priority was to sustain the focus on reducing inflation wherever inflation remained well above target.<\/p>\n
Selassie said the third policy was to implement reforms that enhance skills development, spur innovation, improve the business environment, and promote trade integration to secure more affordable and stable financing.<\/p>\n
‘But the burden should not just be on countries alone. Support from the international community will remain ess
\nential.<\/p>\n
‘The IMF stands ready to support, having already provided 58 billion dollars in financing to the region since the start of the pandemic.<\/p>\n
‘Let me conclude by stressing that the region is at a turning point. With the right policy choices, I am very confident that the region will ensure that this will be the African century.’<\/p>\n
Source: News Agency of Nigeria<\/p>\n","protected":false},"excerpt":{"rendered":"
The International Monetary Fund (IMF) says economic growth in Sub-Saharan Africa (SSA) is projected to rise from 3.4 per cent in 2023 to 3.8 per cent in 2024.<\/p>\n
Abebe Selassie, Director, African Department, IMF, said this at a news briefing on the IMF’…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"yoast_head":"\n