Economic Snapshot for Sub-Saharan Africa
August 21, 2019
Regional growth is now thus expected to hold steady from 2018’s modest outturn
This year, regional growth is seen remaining steady from 2018’s modest upturn, propped up by fast-growing, smaller economies like Ghana, Tanzania and Uganda. Externally, a slowing global economy, commodity price volatility and elevated trade tensions, combined with policy uncertainty, fiscal concerns and slow pace of reforms domestically, dampen the region’s outlook.
Sub-Saharan Africa Monetary & Financial Sector News
Regional inflation jumped to 10.5% in June (May: 9.5%), on spiraling inflation in Zimbabwe and stronger food price growth in Kenya. Price pressures in the region are expected to subside marginally this year from 2018, driven by still-relatively tight monetary policy stances and increased FX stability. A preliminary estimate for July indicates that inflation held steady at 10.5%.
With the exception of South Africa’s Central Bank, which cut its policy rate in mid-July amid benign inflation and weak growth, central banks across the region kept rates on hold recently. Looking ahead, the region’s policymakers are projected to further loosen policy by year-end, amid abating price pressures internally and the shift to more accommodative conditions globally.
Most of the region’s currencies weakened against the U.S dollar over the past month, especially South Africa’s rand which plunged amid increasing economic woes. Moreover, the recent “hawkish” rate cut by the Fed, which disappointed hopes for further reductions, weighed on emerging-market currencies. The vast majority of the region’s currencies are set to depreciate this year.
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5 years of Sub-Saharan Africa economic forecasts for more than 30 economic indicators.
Sub-Saharan Africa Economic News
South Africa: Inflation slides to six-month low in July
August 21, 2019
Consumer prices rose 0.4% over the previous month in July, matching June’s month-on-month upturn.
Nigeria: Inflation falls to one-year low in July
August 16, 2019
Consumer prices rose 1.01% on a month-on-month basis in July, down marginally from June’s 1.07% climb.
Angola: Cabinda crude oil price inched down in July; Angolan production slumps to an over 12-year low
August 16, 2019
The average price of Angola’s Cabinda crude fell from USD 65.5 per barrel (pb) in June to USD 64.9 pb in July.
South Africa: Rand tumbles on slew of worrisome news
August 16, 2019
On 16 August, the rand traded at 15.23 per USD, a 8.7% depreciation from the same day in July.
Ghana: Inflation rises in July
August 15, 2019
Consumer prices rose 0.6% over the previous month in July, down from the 0.8% month-on-month increase in June.
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