2024-10-29 00:25:00
The International Monetary Fund (IMF) released its latest report on the regional economic outlook on Friday October 25, 2024 in Washington DC. The document highlighted the economic growth rates of sub-Saharan African countries.
Abdul Wahab ADO
It is a context of growing economic and social pressures and growing geostrategic tensions that the IMF highlights in its report on regional economic prospects. In the West African Economic and Monetary Union (UEMOA), according to the report, the economic growth rate will be 6.5% in Benin in 2025; 4.4% in Mali; 7.3% in Niger; 5.8% in Burkina Faso; 6.4% in Ivory Coast; 5% in Guinea-Bissau and 5.3% in Togo. In the Union, in 2025, it will be Senegal that will experience strong growth, according to the IMF. Niger will be in second place with its growth rate and Benin, in third place.
The report shows that economic growth in the African region is expected to remain moderate at 3.6% in 2024, unchanged from 2023, and is expected to increase slightly to 4.2% in 2025. However, this growth is still insufficient to significantly reduce or address poverty. the region faces many development challenges.
Publishing the report, Abebe Aemro Selassie, director of the IMF’s Africa department, recalled the scale of the challenges for policymakers: “Countries in sub-Saharan Africa are navigating a complex economic landscape marked by both progress and persistent vulnerabilities. »
The dilemma is how to reduce macroeconomic imbalances in the region, while financing the development goals of their countries, especially in terms of job creation, poverty reduction, and infrastructure improvement. “Governments must balance necessary but difficult reforms with the high development expectations of their populations,” Mr. Selassie said. He also pointed out that while some countries in the region are among the fastest growing economies in the world, others, especially oil exporting countries, are still struggling with lower growth rates. Despite a gradual decline in inflation, rates remain in double digits in almost a third of the region’s countries.
Urgent amendments
The IMF report recommends urgent measures to reduce vulnerabilities. One of the main priorities for governments in the region is to adopt an economic policy adapted to the extent of macroeconomic imbalances while taking into account political constraints. Countries with high imbalances must resort to more and faster fiscal reforms, given very tight financing constraints. Mr. Selassie said: “The need for international financial support is most urgent for this group of countries.”
The IMF recommends considering easing monetary policy, and gradually rebuilding their fiscal and external reserves. This would strengthen their resilience against future economic shocks, while maintaining a stable growth environment. The IMF’s October 2024 outlook shows that while sub-Saharan Africa faces difficult trade-offs, the path to sustainable growth is still possible, provided reforms are well calibrated.
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Countries, complicating the economic landscape further.
The report emphasizes the importance of tailored policies that can help the region’s diverse economies address their specific challenges. Mr. Selassie remarked that enhancing investment in education, health, and infrastructure is crucial for sustained growth. He underscored the need for greater regional cooperation to facilitate trade and investment, which can drive economic resilience.
Moreover, the IMF report calls for a reevaluation of economic policies to foster inclusive growth. Sub-Saharan African countries must ensure that the benefits of economic growth reach all segments of their populations, thereby reducing inequalities. This requires not just government action, but also engagement with the private sector to foster job creation and innovation.
while the IMF report showcases positive growth prospects for several countries in sub-Saharan Africa, it also highlights significant challenges that need to be addressed to achieve long-term stability and development.
The International Monetary Fund (IMF) issued a report on regional economic outlooks for sub-Saharan Africa on October 25, 2024, showcasing the economic growth forecasts for West African Economic and Monetary Union (UEMOA) countries. The report indicates varying growth rates for 2025, with Benin projected at 6.5%, Mali at 4.4%, Niger at 7.3%, Burkina Faso at 5.8%, Ivory Coast at 6.4%, Guinea-Bissau at 5%, and Togo at 5.3%. Senegal is also expected to experience strong growth, followed closely by Niger and Benin.
the region’s growth is anticipated to remain modest at 3.6% in 2024, the same as in 2023, with a slight rise to 4.2% in 2025. While certain countries are among the fastest growing globally, others, particularly oil exporters, continue to struggle with slower growth and persistent inflation challenges. The report emphasizes the ongoing development difficulties faced by the region and the necessity for governments to navigate complex economic reforms and high development expectations from their populations.
To address these issues, the IMF calls for urgent, tailored economic policies to mitigate macroeconomic imbalances, especially among countries facing financial constraints. It recommends prompt fiscal reforms, easing of monetary policies, and strengthening fiscal and external reserves to enhance resilience against economic shocks, thereby maintaining conditions conducive to sustained growth.