Difficult Financial Year For Sub-Saharan Africa:IMF
Published: 2016 May 04 06:01:41 (5490 Views)
The International Monetary Fund has forecast that sub-Saharan Africa's economic growth is expected to slow further and drop to three percent this year.
An IMF Regional Economic Outlook for Sub-Saharan Africa said weak commodity prices, tight external financing and the El Nino induced drought will affect economic growth.
Growth is expected to slow further to 3 percent this year, well below the 6 percent average over the last decade and barely above population growth. The report shows growth fell to 3½ percent in 2015, the lowest level in 15 years.
It called on the regional countries to urgently reset policies to secure growth.
IMF said while the immediate outlook for many sub-Saharan African countries remains difficult, the region’s medium-term growth prospects are still favourable. The underlying domestic drivers of growth at play over the last decade generally continue to be in place. In particular, the region’s much improved business environment and favourable demographics should help bolster growth in the medium term.
Zimbabwe is one of the countries hit hard by the decline in commodity prices as a greater part of revenue comes from the sector.
Given the substantially tighter external financing environment, market access countries with elevated fiscal and current account deficits will also need to recalibrate their fiscal policies to rebuild scarce buffers and mitigate vulnerabilities if external conditions worsen further.
- Herald
An IMF Regional Economic Outlook for Sub-Saharan Africa said weak commodity prices, tight external financing and the El Nino induced drought will affect economic growth.
Growth is expected to slow further to 3 percent this year, well below the 6 percent average over the last decade and barely above population growth. The report shows growth fell to 3½ percent in 2015, the lowest level in 15 years.
It called on the regional countries to urgently reset policies to secure growth.
IMF said while the immediate outlook for many sub-Saharan African countries remains difficult, the region’s medium-term growth prospects are still favourable. The underlying domestic drivers of growth at play over the last decade generally continue to be in place. In particular, the region’s much improved business environment and favourable demographics should help bolster growth in the medium term.
Zimbabwe is one of the countries hit hard by the decline in commodity prices as a greater part of revenue comes from the sector.
Given the substantially tighter external financing environment, market access countries with elevated fiscal and current account deficits will also need to recalibrate their fiscal policies to rebuild scarce buffers and mitigate vulnerabilities if external conditions worsen further.
- Herald
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