Report on the Economic Outlook for sub-Saharan Africa by the International Monetary Fund (IMF)
Channel: SOAS University of London
Date: 22/05/2023

'Report on the Economic Outlook for sub-Saharan Africa by the International Monetary Fund (IMF)' was held at SOAS University of London on 11th May 2023.

Persistent global inflation and tighter monetary policies have led to higher borrowing costs for sub-Saharan African countries and have placed greater pressure on exchange rates. Indeed, no country has been able to issue a Eurobond since spring 2022.

The interest burden on public debt is rising, owing to a greater reliance on expensive market-based funding combined with a long-term decline in aid budgets. The lack of financing affects a region that is already struggling with elevated macroeconomic imbalances. Public debt and inflation are at levels not seen in decades, with double-digit inflation present in about half of the countries—eroding household purchasing power and striking at the most vulnerable. In this context, the economic recovery has been interrupted.

Growth in sub-Saharan Africa will decline to 3.6 percent this year. Amid a global slowdown, activity is expected to decelerate for a second year in a row. Still, this headline figure masks significant variation across the region. The funding squeeze will also impact the region’s longer-term outlook. A shortage of funding may force countries to reduce resources for critical development sectors like health, education, and infrastructure, weakening the region’s growth potential.

Further details: https://www.soas.ac.uk/about/event/report-economic-outlook-sub-saharan-africa-international-monetary-fund-imf