According to the latest Africa’s Pulse report from the World Bank, economic growth is rebounding in sub-Saharan Africa, thanks to the growth in private consumption and the drop in inflation.
Nevertheless, the recovery remains fragile, according to the same report. The reasons are the uncertainties related to the global economic situation, the increasingly heavy burden of debt service, frequent natural disasters and an intensification of conflicts and violence.
It added: “To sustain long-term growth and truly reduce poverty, it is critical to take transformative policy actions to tackle the in-depth problem of inequality”
The report forecasts a rebound in growth to 3.4% in 2024 and 3.8% in 2025, compared to a rate of 2.6% in 2023. This recovery is, regardless, precarious. While inflation is falling in most sub-Saharan African economies, falling on average from 7.1% in 2023 to 5.1% in 2024, it remains elevated compared to pre-COVID levels.
“Moreover, even if the progression of public debt slows down, more than half of African administrations are struggling with external liquidity problems and an unsustainable level of debt,” we read in a press release from the World Bank.
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