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Sub-Saharan African economy to grow 3.7%

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Growth in Sub-Saharan Africa (SSA) will accelerate to 3.7% in 2024, from an estimated 2.8% in 2023, according to a January report by research firm, BMI, which expects large markets to support overall growth in 2024.

In contrast, the Sub-Saharan Africa Monthly Outlook shows that 2023, when Nigeria and South Africa both dragged on regional expansion.

It further shows that East Africa will be locus of economic growth, with markets like Ethiopia, Rwanda and the DRC experiencing growth above 6.0% year – on – year (y-oy). Growth will be driven by private consumption, as falling inflation boosts purchasing power, and higher fixed investment growth.

“We expect that inflation will trend downwards in 2024, mostly on account of strong base effects and easing fuel prices. Whilst price growth will remain above the long-term trend, we expect sustained disinflation to incentivize major SSA markets to shift toward monetary easing,” the report reads in part.

Further, its suggests that sluggish economic growth in markets such as South Africa, Ghana and Nigeria will encourage a shift to more accommodative monetary conditions in 2024. Currency stability and a dovish pivot in developed markets will also support interest rate cuts in the region.

 

 

 

 

 

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