According to World Bank, 29 out of 33 countries in the region with available data had inflation of over 5% in July, while 17 were in double digits. The number of countries in debt distress was little changed, while borrowing costs rose significantly.
Sub-Saharan Africa’s recovery has been abruptly interrupted. Last year, activity bounced back, lifting GDP growth in 2021 to 4.7 per cent. But growth in 2022 is expected to slow sharply by more than 1 percentage point to 3.6 per cent as a worldwide slowdown, tighter global financial conditions, and a dramatic pickup in global inflation spill into a region already wearied by an ongoing series of shocks.
Côte d’Ivoire was projected to be West Africa’s fastest-growing economy this year at 5.7%, but Senegal is set to overtake it – expanding 4.8% this year before speeding up to 8% in 2023 and 10.5% in 2024. The forecast for Kenya, East Arica’s largest economy, was kept the same at 5%.
