Citi’s Post

Excellent rundown of Africa's main economic drivers: Positive population growth and amazing ability to adopt late-stage technologies (leapfrogging) which helps Africa to transcend classic economic stages by bypassing Manufacturing and going straight into Services. A key determinant for the continent is genuine fiscal reform focusing on growing revenues (and taxes) & accounting for informal sectors (and again taxing them) vs just cutting spending or just increasing taxes.

Africa - Real GDP Forecasts: 🌐 The World Bank expects global growth to stabilise at 2.6% this year, despite geopolitical tensions and high interest rates. It is projected to increase to 2.7% by 2025-26, supported by modest growth in trade and investment. 🌍 Sub-Saharan Africa's growth slowed to 3% in 2023 but is expected to rebound to 3.5% in 2024 and average around 4% from 2025 to 2026. Factors like lower inflation, increased private consumption, and higher investment contribute to this recovery. However, political instability and conflicts have dampened the region's recovery prospects. Significant risks include global geopolitical tensions, conflicts in the Middle East, regional political instability, economic slowdowns in China, adverse weather events, and heightened government debt risks.

Lesetja Kganyago: Overview of the South African economy A world economy in flux 🗯 The global economy continues on a long recovery path from the pandemic. This path has been a troubled one, and despite better prospects in recent months, remains beset by risks and vulnerabilities built up during the pandemic. Inflation remains stubbornly high, and public debt levels globally are at record levels. Technological development carries both risks to cybersecurity and the hope of large and sustained boosts to global productivity. Meanwhile, 22 July appears to have been the hottest day on Earth in recent history. In short: we are entering an era of new economic challenges, even as the recent ones have yet to be overcome. There is little fiscal or monetary policy space available to deal with the risks that could emerge to financial stability, renewed inflation pressures or even the growing challenge of climate change. Inflation remains a major policy concern for central banks globally. Although global inflation declined from 8.7% in 2022 to 6.8% in 2023 and continues to ease in 20242 , it remains high relative to the 2–3% inflation targets that many countries are trying to achieve. Restrictive monetary policy, along with the recovery in supply chains and other pandemic-related bottlenecks, has helped inflation to recede from its 2022 highs. However, global disinflation has slowed recently, as is well illustrated by consumer price inflation in the United States (US) still sitting at 3% relative to their 2% target. The slow pace of disinflation reflects a pattern of lower imported inflation but higher services inflation across most economies. In some, rising wages and sustained pentup demand for services have been key factors. In emerging markets specifically, fiscal challenges and sustained currency depreciations have played more of a role. #centralbank #policy #inflation #Africa #UnitedStates #SouthAfrica

Over 100 developing countries including China, India, Brazil and South Africa face several challenges that impact their efforts to become high-income countries in the next few decades in what The World Bank calls the “middle-income trap”. The ‘World Development Report 2024: The Middle Income Trap’ reveals that as countries grow wealthier, they usually hit a ‘trap’ at about 10% of the annual U.S. GDP per person, the equivalent of $8,000 today. The World Bank states that this is in the middle of the range of what it classifies as middle-income countries. Read more: https://lnkd.in/dhg4KWBZ #WorldBank #MiddleIncome #Economy #EconomicGrowth

Africa’s economies have faced multiple challenges over the past decade that have put strain on their budgets and currencies, from Covid-19 to rising interest rates to geopolitical tensions. South Africa, which has more than twice as many wealthy individuals as any other African country, has lost 20% of its millionaires in the last 10 years as the country battled logistics constraints, rolling blackouts and endemic crime and corruption.

As Africa gears up for an average GDP growth of 3.8% in 2024, surpassing global averages, it's clear that #Africa is not just growing; it's thriving. This report highlights the resilience and potential of the African #economy, emphasizing the importance of economic diversification, strategic investments, and sustainable growth practices. Read more from African Development Bank Group: https://lnkd.in/eT9BxFDp

The African Development Bank Group's 2023 report shines a light on the economic trajectory of West Africa, forecasting a promising rise from an estimated 3.2% growth in 2023 to 4% in 2024, and further to 4.4% by 2025. This uptick signifies a robust economic momentum, with the exception of Nigeria and Ghana, where growth is expected to be more moderate. Delving into the historical data, the IMF's latest update provides an insightful look at West Africa's GDP nominal since 1960, with projections extending all the way to 2029. This long-term perspective not only helps us understand past economic patterns but also prepares us for future opportunities and challenges. As we navigate these economic waters, it's crucial to align growth with sustainability. Let's engage in conversations that drive not just economic prosperity but also sustainable practices that benefit our environment and society. #WestAfricaEconomy #EconomicGrowth #Sustainability #AfricanDevelopmentBank #IMF #WestAfrica #ClimateChange

This is making the rounds in Accra’s LinkedIN Econ/trade ecosystem - an interesting, dynamic chart of fluctuations in GDP in West Africa over the past 60 years with forward projections, as well. #ghanabusiness #development

A new report by the World Bank has projected a 2.8% Gross Domestic Product (GDP) growth of 2.8% for Ghana in 2024. The forecast was captured in the January 2024 World Bank Global Economic Prospects 2024.