Economic Snapshot for Sub-Saharan Africa
October 17, 2019
After a projected slowdown this year, growth is expected to pick up in 2020 on the back of strengthening activity in the region’s largest resource-rich economies: Nigeria and South Africa. That said, the outlook remains challenging, weighed on by domestic policy uncertainty, slow pace of reforms, commodity-price volatility, elevated trade tensions and weakening global growth.
Sub-Saharan Africa Monetary & Financial Sector News
Inflation in Sub-Saharan Africa spiked to 12.1% in August (July: 11.2%), the highest print since May 2017. Stronger price pressures in Ethiopia and South Africa, and spiraling inflation in Zimbabwe were largely behind the acceleration. Looking ahead, inflationary pressures are seen moderating somewhat, in large part due to increased stability of exchange rates.
All major central banks in the region stayed put over the past month, with those of Angola and Kenya hinting at some loosening of policy ahead. As a whole, central bankers are expected to lower rates this year and next year amid abating inflation and increased scope from more accommodative conditions globally.
Most currencies held largely steady in recent weeks. The notable exceptions were the South African rand, which weakened amid lower global risk appetite, and the Angolan kwanza which lost considerable ground against the USD on reduced FX supply in the market. Next year, most of the region’s currencies are expected to depreciate, albeit much less sharply than 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
Ghana: Inflation inches down in September
October 16, 2019
Inflation edged down to 7.6% in September from 7.8% in August following a modification to the consumer price index base year from 2012 to 2018.
Angola: Economy contracts again in Q2
October 15, 2019
The economy contracted 0.1% on an annual basis in the second quarter, following the previous quarter’s revised 0.3% dip (previously reported: -0.4% year-on-year), according to national accounts data released by Angola’s Statistical Institute (INE) on 15 October. The all-important Angolan oil sector, which accounts for around one-third of GDP, once again drove the overall contraction amid sliding domestic oil production.
Angola: Kwanza depreciates at faster rate in October
October 15, 2019
The Angolan kwanza continued losing ground against the U.S. dollar in recent weeks.
Nigeria: Inflation rises from over three-year low in September
October 15, 2019
Consumer prices increased 1.04% on a month-on-month basis in September, up from August’s 0.99% rise.
Angola: Inflation falls to near four-year low in September
October 14, 2019
Consumer prices in the province of Luanda rose 1.6% from the previous month in September, ticking up from August’s 1.5% increase and marking the highest reading in 12 months.
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