- The recovery from the pandemic is expected to decline in 2022 due to a slowdown in global economic activity, supply disruptions, new coronavirus variants, climatic shocks, high inflation, and rising financial risks due to high and increasingly vulnerable debt levels.
The World Bank has recently published Africa’s Pulse, a biannual analysis of the near-term regional macroeconomic outlook. The report forecasts a growth of 3.6 percent in 2022 for sub-Saharan Africa against 4 percent in 2021.The recovery from the pandemic is expected to decline in 2022 due to a slowdown in global economic activity, supply disruptions, new coronavirus variants, climatic shocks, high inflation, and rising financial risks due to high and increasingly vulnerable debt levels.
The report observed that the challenge faced by the Sub-Saharan African economy that is still struggling to recover from the COVID –induced 2020 recession, is compounded by the Russian invasion of Ukraine. Adding to the region’s economic woes are the rising global commodity prices, since the onset of the Russia Ukraine war. The analysis points out that the high fuel and food prices will fuel higher inflation across African countries. An area of concern is the higher probability of civil wars and political instability triggered by food and energy- inflation. Russia and Ukraine being the largest suppliers of fertiliser, wheat, corn, seed oil etc, the region will face stiff challenges. The region is likely to receive reduced foreign financial flows into the region with tighter global financial situations.
Albert Zeufack, World Bank Chief Economist for Africa observed that trade policy can play a key role by ensuring the free flow of food across borders throughout the region. He urged policymakers to adopt innovative solutions including trimming or waving import duties on staple foods temporarily to provide relief to their people.
The analysis noted that recovery across the region will remain uneven. The resource-rich countries, particularly oil economies will experience better performance due to high oil prices while non-resource rich countries may face a deceleration in economic activity.
https://trendsnafrica.com/africas-pulse-the-prospects-for-recovery-have-improved-for-ssa/
