Sub-Saharan Africa Regional Economic Outlook: Recovery Amid Elevated Uncertainty
Sub-Saharan Africa, April 12, 2019
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- Published: April 12, 2019
- Series: Sub-Saharan Africa
Regional growth and outlook
- Regional growth is set to pick up from 3 percent in 2018 to 3.5 percent in 2019, before stabilizing at close to 4 percent over the medium term.
- Aggregate growth stabilizes at slightly below 4 percent over the medium term—or about 5 percent, excluding the two major economies, Nigeria and South Africa.
- Economic recovery in sub-Saharan Africa is set to continue with growth projected to pick up from 3 percent in 2018 to 3.5 percent in 2019.
Two-track recovery and cross-country differences
- Region‑wide averages mask considerable differences in growth performance and prospects across countries.
- About half of the region’s countries—mostly non-resource-intensive countries—are expected to grow at 5 percent or more.
- Some 21 countries, mainly the region’s more diversified economies, are expected to sustain growth at 5 percent or more and remain on the per capita convergence path experienced since the early 2000s.
- The remaining countries—mostly resource-intensive economies—face slower improvements in living standards.
- In the 24 other more resource-dependent economies, including the largest (Nigeria and South Africa), growth looks set to remain anemic in the near term.
- With some two-thirds of the region’s population residing in these countries, much slower improvement in standards of living is implied for the lion’s share of sub-Saharan Africans.
Conflict and economic consequences
- Armed conflict remains pervasive; while there was a declining trend in incidence and intensity since the early 2000s, there has been an uptick in violence in recent years reflecting the global increase in conflict.
- Overall, about a third of the countries in the region have been affected by conflict in recent years.
African Continental Free Trade Area (AfCFTA)
- In 2018, African Union member countries agreed to establish the AfCFTA to boost regional trade and economic integration.
- Agreement elements: eliminate tariffs on most goods, liberalize trade of key services, address nontariff obstacles to intraregional trade, and eventually create a continental single market with free movement of labor and capital.
- The AfCFTA has been ratified by 22 countries and is likely to take effect in 2019, although negotiations on specific features are ongoing.
- Once operational, the AfCFTA will establish a market of 1.2 billion people with a combined GDP of US$2.5 trillion.
- The AfCFTA could be an economic game changer for the continent.
Policy priorities and recommendations
- Strengthen resilience and create higher, more inclusive, and durable growth across the region.
- Build fiscal space and enhance resilience to shocks by stepping up actions to mobilize revenues.
- Implement policies to boost productivity and private investment.
Sub-Saharan Africa Regional Economic Outlook: Recovery Amid Elevated Uncertainty, April 2019
Content in this bundle
- sreo0419
- Chapter 1
- Chapter 2
- Chapter 3
- Sub-Saharan Africa Regional Economic Outlook; Recovery Amid Elevated Uncertainty, April 2019
- Statistical Appendix. Sub-Saharan Africa Regional Economic Outlook, April 2019
- Table of Contents and Executive Summary. Sub-Saharan Africa Regional Economic Outlook, April 2019
- 1. Recuperação dupla num contexto de elevada incerteza
References
- IMF Data Portal
- [IMF Data Mapper® v3
Plot, compare and import data](https://www.imf.org/external/datamapper/datasets/AFRREO)
- https://www.imf.org/en/publications/weo
- Global Economy in Crosscurrents of War and Technology
- https://www.imf.org/en/publications/gfsr
- Global Financial Markets Confront the War in the Middle East and Amplification Risks
- https://www.imf.org/en/publications/fm
- Fiscal Policy under Pressure: High Debt, Rising Risks
- https://www.imf.org/en/publications/reo
- Asia and Pacific
- Europe
- Middle East and Central Asia
- Sub-Saharan Africa
- Western Hemisphere
- https://www.imf.org/en/publications/areb
- Getting to Growth in an Age of Uncertainty
- https://www.imf.org/en/publications/finance-development
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