Economic Snapshot for Sub-Saharan Africa
November 18, 2020
The region to suffer its worst contraction on record this year
The region will likely suffer its worst contraction on record this year as the Covid-19 pandemic ravages activity. Languishing demand from key trading partners; steep declines in prices for commodities like oil, minerals and metals; and drastic containment measures domestically will pummel economies. Rising public debt burdens and limited fiscal space cloud the outlook further.
Sub-Saharan Africa Monetary & Financial Sector News
Regional inflation edged up to 15.2% in May (April: 15.0%). Rising food inflation in Angola, Ghana and Nigeria in large part drove the acceleration, while inflation keeps soaring in the triple digits in Zimbabwe. Ahead, inflation in Sub-Saharan Africa is set to remain elevated and above 2019, fueled by weaker currencies and supply disruptions induced by the pandemic.
While the central banks of Botswana and Kenya stood pat in recent weeks, the monetary authorities of Mozambique and, most notably, Nigeria, lowered their benchmark rates. Nigeria’s move surprised market analysts amid the risk of fueling already-elevated inflation. As a whole, policymakers are broadly expected to stay put ahead.
Currency performance across Sub-Saharan Africa was mixed recently. Most notably, the Angolan kwanza’s slide against the USD shows no signs of abating, while the South African rand continued to recoup some of the heavy losses it has taken since the outset of 2020. This year, the majority of currencies in the region are projected to depreciate more sharply than in 2019.
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5 years of Sub-Saharan Africa economic forecasts for more than 30 economic indicators.
Sub-Saharan Africa Economic News
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South Africa: Inflation drops in June
July 21, 2021
Consumer prices increased 0.20% over the previous month in June, accelerating from May's 0.08% increase.
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Nigeria: Inflation ticks down to four-month low in June
July 16, 2021
Consumer prices increased 1.06% over the previous month in June, up from May’s 1.01% rise.
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Angola: Cabinda prices rise to over two-and-a-half-year high in June
July 15, 2021
Cabinda oil sold for USD 73.7 per barrel (pb) on average in June, up markedly from USD 68.6 pb in May, and marking the highest price since October 2018.
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Angola: GDP drops at milder pace in first quarter of 2021
July 15, 2021
Economic conditions remained challenging in the first quarter of 2021, with GDP contracting 3.4% year-on-year amid the lingering impact of the Covid-19 pandemic.
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Angola: Inflation increases to over three-year high in June
July 14, 2021
Consumer prices increased 2.24% in June over the previous month, picking up from the 2.21% rise recorded in May.
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