Poor outlook for Africa – IMF

A LACK of access to vaccines is dampening economic recovery in sub-Saharan Africa and the region will lag behind developed nations for years, the International Monetary Fund said yesterday.

Confirming its sub-Saharan Africa growth forecast of 3.7% for the year and 3.8% for next year, the IMF said rising commodity prices and favourable harvests had benefited some countries but “the outlook remains extremely uncertain, and risks are tilted to the downside”. “Much hinged on the trajectory of the pandemic and vaccinations, but disruptions in global activity and financial markets could also derail recovery.”

Sub-Saharan Africa’s 2021 projected growth rates mean the region suffered the “slowest recovery in the world”.

South Africa is expected to expand by 5.0% this year before growth slows down to 2.2% next year.

Rising food inflation is set to remain a burning issue. “The crisis has worsened inequality… which may add to the risk of social tension and political instability.”