Macroeconomic Outcomes in sub-Saharan Africa Growing, Says IMF

Addis Ababa October 02/2018 Macroeconomic outcomes have continued to grow in sub-Saharan Africa, according to Regional Economic Outlook: Sub-Saharan Africa in 2018 Report. The Outlook revealed that economic growth in the region is expected to increase from 2.7 percent in 2017 to 3.1 percent in 2018. The report indicated that reflecting domestic policy adjustments and a supportive external environment, including continued steady growth in the global economy, have contributed for the economic growth. The Regional Economic Outlook: Sub-Saharan Africa in 2018 Report was launched at Economic Commission for Africa today. Launching the report, IMF African Department Division Chief Papa N’Diaye said the macroeconomic outcomes in Sub-Saharan Africa continue to strengthen. “While the improved outcomes are welcome, the nature of the adjustment has been such that underlying vulnerabilities, both near-term and medium-term, have yet to be decisively addressed to shield the recovery against risks arising from both domestic and external shocks,” he added. Shielding the recovery and creating enough jobs for the region to harness fully its demographic dividend would require strong, sustainable, and inclusive growth, N’Diaye elaborated. According to the chief, growth is expected to accelerate to about 4 percent over the medium term and on current policies --- too low to create the number of jobs needed to absorb anticipated new entrants into labor markets. If successful, sub-Saharan Africa can create the required 20 million good-quality jobs per year for its young and growing population and make progress toward meeting the Sustainable Development Goals, he pointed out. N’Diaye explained that achieving this in turn would require policies to strengthen resilience and facilitate the reallocation of labor and capital into more productive sectors to lift incomes faster. These policies include steady fiscal consolidation to reduce debt vulnerabilities, advancing revenue mobilization, enhancing the efficiency of expenditure, addressing growing financial sector weaknesses in a timely manner and pursuing policies to foster private investment and enhance potential growth. The report stated that improved relation between Ethiopia and Eritrea is providing a window of hope for the countries as well as the sub-Saharan Africa to continue to move forward in the economy. The Regional Economic Outlook: Sub-Saharan Africa is published twice in a year by the International Monetary Fund review developments in sub-Saharan Africa.