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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Nigeria: Economy returns to growth in the fourth quarter
February 22, 2021
The economy returned to growth, albeit marginally, in the final quarter of last year, with GDP expanding 0.1% year-on-year.
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Angola: Inflation rises further in January
February 19, 2021
Consumer prices increased 1.94% from the previous month in January, marking the softest monthly rise since September last year and coming in above December’s 2.19% increase.
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South Africa: Inflation ticks up in January
February 17, 2021
Consumer prices rose 0.34% in January over the previous month, picking up from the 0.17% increase recorded in December and marking the sharpest increase in prices since July 2020.
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Angola: Cabinda prices rise in January, but remain depressed
February 16, 2021
Angola’s Cabinda oil sold at USD 55.4 per barrel (pb) on average in January, which was up from December’s USD 51.1 pb.
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Nigeria: Inflation hits over three-year high in January
February 16, 2021
Consumer prices rose 1.49% month-on-month in January, down from December’s 1.61% increase.
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