IMF Raises Sub-Saharan Africa’s 2025 Growth Forecast

BREAKING NEWSOctober 25, 2024 at 2:09 PM UTC

TLDR

IMF revises sub-Saharan Africa's 2025 growth forecast to 4.2%, up from 4%; warns of high uncertainty due to recent social unrest and economic adjustments.
Rising living costs and austerity measures spark citizen frustration, impacting economic growth unevenly; natural-resource-dependent nations grow slower.
Double-digit inflation persists in some countries, coupled with increasing debt burdens diverting resources from critical development areas.

The International Monetary Fund (IMF) has revised its 2025 growth forecast for sub-Saharan Africa to 4.2%, the highest since 2021, up from a previous 4% estimate.

But the fund cautioned that uncertainty remains high, especially given recent social unrest tied to tough economic adjustments. IMF Africa Department Director Abebe Selassie noted that rising costs of living and austerity measures, including tax hikes and spending cuts, have fueled citizen frustration.

Economic growth is expected to be uneven, with natural-resource-dependent nations growing at half the pace of others. Persistent double-digit inflation in some countries and increasing debt burdens continue to divert resources from critical development areas.

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Key Takeaways

Sub-Saharan Africa’s economic growth prospects are tempered by high unemployment, inequality, and the need for rapid job creation. The IMF forecasts that 15 million new jobs will be required annually by 2030 to support the region’s youthful population, a pressing issue as social unrest grows. Addressing these challenges is essential for leveraging Africa's potential as a future labor force powerhouse amid global demographic shifts.

Economy

GDP Growth

IMF

Economic Growth

Sub-Saharan Africa