INSIGHT REGULATORY UPDATE Market
Watch Africa
According to a report by the IMF the economic recovery in sub-Saharan Africa was better than expected in the second half of 2021, leading to a significant
revision in last year’s estimated growth, from 3.7 to 4.5 per cent. Unfortunately, growth has been affected by the war in Ukraine leading to surging oil and food prices.
Te African Economic Outlook 2022 predicts real GDP growth to decelerate to 4.1 per cent in 2022 in the region overall. President of the African Development Bank Group summarised by saying that the Russia–Ukraine conflict “erupted as Africa’s economy was on a path of recovery from the ravaging impact of the pandemic” and the war “threatens to set back the continent’s promising economic prospects.” In addition, the continent now faces the very real prospect of sliding into stagflation.
In South Africa, the situation has been made worse by rolling blackouts of up to six hours while the government wrestles with high unemployment and a five-year high inflation rate of 6.5 per cent. Meanwhile, the potential for civil unrest has increased amidst the backdrop for control within the ANC.
Africa as a whole, however, offers an immense and P30 WIRE / PULSE / INSIGHT / REPORTS
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