Connect with us

VenturesNow

IMF projects 3.6% economic growth in sub-Saharan Africa

Published

on

The International Monetary Fund (IMF) has revealed that growth in sub-Saharan Africa is expected to slow to 3.6 percent in 2023.

The IMF, through its Director of the African Department, Abebe Aemro Selassie, while speaking to newsmen on Friday, said the projected slowed growth is a result of a “big funding squeeze”, which is connected to the drying up of aid and access to private finance.

“I wish I was bearing better news, but unfortunately, we’re expecting growth to decelerate from 3.9 percent to 3.6 percent in 2023. And this to a large extent reflects the big funding squeeze tied to drying up of aid and access to private finance,” Selassie said.

“So, there are a number of reforms that need to be pursued. I think first and foremost, of course, is policies to strengthen the resilience of economies. So, in many countries, for example, there’s a big challenge in mobilizing more domestic revenues. That needs to be addressed wherever that’s the main challenge.

“Second, I think it’s also important to consider policies to insulate domestic economies from the external environment. So, allowing exchange rates to adjust, interest rates to be recalibrated, to reflect better to reduce inflation are all going to be very important parts of the policy response to this adverse external environment,” added Selassie.

“We are engaging like never before with the region. Of course, over the last couple of years, we’ve provided considerable financing to the tune of around $50 billion to support the region. Whether the very difficult economic environment that was facing and we continue to try and provide as much financing as possible to support countries in the coming months.

“As important, however, of course, are policies and reforms that need to be pursued by countries, and we are deeply engaged with working with countries to navigate and to put in place the right types of policies in each individual country,” said Selassie.

With a typical tax ratio of only 13 percent of GDP in 2022, Sub-Saharan African nations considerably fall behind other emerging economies, developing nations, and developed economies in terms of revenue collection.

The IMF has supplied the area with around $50 billion in financing.

The IMF says it will continue to work with the region to implement the correct kinds of policies that are suited to the requirements of each nation.

IMF projects 3.6% economic growth in sub-Saharan Africa

The International Monetary Fund (IMF) has revealed that growth in sub-Saharan Africa is expected to slow to 3.6 percent in 2023.

The IMF, through its Director of the African Department, Abebe Aemro Selassie, while speaking to newsmen on Friday, said the projected slowed growth is a result of a “big funding squeeze”, which is connected to the drying up of aid and access to private finance.

“I wish I was bearing better news, but unfortunately, we’re expecting growth to decelerate from 3.9 percent to 3.6 percent in 2023. And this to a large extent reflects the big funding squeeze tied to drying up of aid and access to private finance,” Selassie said.

“So, there are a number of reforms that need to be pursued. I think first and foremost, of course, is policies to strengthen the resilience of economies. So, in many countries, for example, there’s a big challenge in mobilizing more domestic revenues. That needs to be addressed wherever that’s the main challenge.

“Second, I think it’s also important to consider policies to insulate domestic economies from the external environment. So, allowing exchange rates to adjust, interest rates to be recalibrated, to reflect better to reduce inflation are all going to be very important parts of the policy response to this adverse external environment,” added Selassie.

“We are engaging like never before with the region. Of course, over the last couple of years, we’ve provided considerable financing to the tune of around $50 billion to support the region. Whether the very difficult economic environment that was facing and we continue to try and provide as much financing as possible to support countries in the coming months.

“As important, however, of course, are policies and reforms that need to be pursued by countries, and we are deeply engaged with working with countries to navigate and to put in place the right types of policies in each individual country,” said Selassie.

With a typical tax ratio of only 13 percent of GDP in 2022, Sub-Saharan African nations considerably fall behind other emerging economies, developing nations, and developed economies in terms of revenue collection.

The IMF has supplied the area with around $50 billion in financing.

The IMF says it will continue to work with the region to implement the correct kinds of policies that are suited to the requirements of each nation.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

VenturesNow

Angola’s draft budget estimates 1.65%/GDP deficit in 2025

Published

on

Draft budget documents show that Angola’s government expects a 1.65% GDP budget deficit in 2025, up from 1.46% this year.

According to finance ministry records on its website, Africa’s second-largest crude oil exporter’s 2025 budget is predicated on $70 per barrel of oil. Brent crude futures were around $74 per barrel on Friday.

In an interview with Reuters last week, Vera Daves de Sousa, the finance minister of Angola, stated that the southern African nation was under a lot of strain due to the possibility of declining oil prices.

Additionally, according to the draft budget, economic growth would pick up speed in the non-oil sectors, increasing from 3.3% this year to 4.1% next year.

According to the finance ministry, yearly inflation will drop from nearly 29% to 16.6% by the end of next year.

Last week, Daves de Sousa told Reuters that Angola was considering asking the International Monetary Fund for a funding program.

Its most current IMF program, worth $3.7 billion, was authorised in 2018 after the country’s earnings were severely damaged by the collapse of global petroleum prices.

Continue Reading

VenturesNow

IMF predicts 4% Middle East, North Africa growth next year

Published

on

The International Monetary Fund (IMF) has said that Middle East and North Africa growth would rebound to 4% next year if oil output curbs were phased out, and headwinds, including wars, subsided.

As geopolitical and macroeconomic concerns remain, the IMF’s latest Regional Economic Outlook, launched in Dubai, predicts “sluggish” growth of 2.1% in 2024.

The IMF noted that risks to the outlook for the overall area, including the Caucasus and Central Asia, “remain tilted to the downside,” and called for an acceleration of structural reforms, notably in governance and labour markets, to raise chances for medium-term growth.

Jihad Azour, the IMF’s director for the Middle East and Central Asia department, said in an interview that the MENA growth estimate for 2024 has been revised downwards by 0.6% from April’s report, mainly due to the extension of the Israel-Hamas conflict and further extensions of OPEC+ voluntary oil production cuts.

He said the “good news” was that inflation was gradually being brought under control across the region. He predicted that the region would average the 3% goal rate in 2024, except for Egypt, Iran, and Sudan.

The outlook, however, differs significantly throughout the region. According to Azour, oil-exporting nations should be better equipped to handle such threats thanks to “strong” growth in the non-oil sector.

Non-oil growth in the Gulf Cooperation Council (GCC) region has mostly outpaced overall growth despite lower oil prices and production this year, thanks to government-led investment programs that support domestic demand. The GCC includes Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.

Oil importers from the Middle East and North Africa are still more susceptible to protracted hostilities and significant funding requirements.

“Even as these issues gradually abate, uncertainty remains high and structural gaps will likely hold back productivity growth in many economies over the forecast horizon,” the IMF report said.

Since January 2024, the IMF has authorised $13.4 billion in fresh investment for Middle Eastern and Central Asian nations, including initiatives in Jordan, Pakistan, and Egypt.

Continue Reading

EDITOR’S PICK

Tech14 mins ago

Ghana’s fintech PayBox launches super app to power developers

Ghanaian fintech startup, PayBox Global, has announced the launch of an app known as the Buddy Super App Developer Programme...

Metro19 mins ago

Detained Zambian journalist Zgambo released on K10,000 bail after two weeks

Prominent Zambian journalist, Thomas Zgambo, who was in detention for two weeks on allegations of criminal defamation against President Hakainde...

Politics5 hours ago

President Maisi concedes as Botswana’s ruling party loses 58-year reign

Following preliminary results showing his party lost its legislative majority by a landslide in this week’s election, Botswana’s President, Mokgweetsi...

VenturesNow6 hours ago

Angola’s draft budget estimates 1.65%/GDP deficit in 2025

Draft budget documents show that Angola’s government expects a 1.65% GDP budget deficit in 2025, up from 1.46% this year....

VenturesNow6 hours ago

IMF predicts 4% Middle East, North Africa growth next year

The International Monetary Fund (IMF) has said that Middle East and North Africa growth would rebound to 4% next year...

VenturesNow6 hours ago

Cocoa producers in Ghana worry about prices, child labour

A “living income” for farmers is one of the major environmental and social concerns that Ghanaian cocoa growers listed in...

VenturesNow6 hours ago

TotalEnergies sells off offshore blocks in South Africa. Here’s why

Following the release of TotalEnergies’ third-quarter results on Thursday, CEO Patrick Pouyanne informed analysts that the French company had just...

Musings From Abroad6 hours ago

Brazil’s Embraer to invest in Morocco’s aerospace sector

Morocco’s industry ministry has announced that Brazilian aircraft manufacturer, Embraer, has reached an initial agreement to invest in the country’s...

VenturesNow6 hours ago

Botswana: Debswana diamond sales drop almost 50% in first nine months of 2024

According to data provided by Botswana’s national bank on Tuesday, sales of rough diamonds at the Debswana Diamond Company decreased...

Metro7 hours ago

Translate friendships into economic gains, Tinubu tells foreign countries

Nigeria’s President Bola Tinubu has called on foreign countries to translate their friendship with Nigeria to economic gains for the...

Trending