By ETimes

Growth in Sub-Saharan Africa is forecast to slow from 4% in 2021 to 3.6% in 2022 but indicators suggest some moderation in the pace of Zimbabwe’s growth this year.

According to the World Bank’s Africa Pulse report for 2022, the growth deceleration in 2022 reflects several short-term headwinds. These include the slowdown in the global economy, lingering effects of the coronavirus pandemic, elevated inflation, rising financial risks owing to high public debts reaching unsustainable levels, continued supply disruptions and the war in Ukraine.

Angola and the Republic of Congo are forecast to record surpluses of 9.1 (11) and 9 (15.3) percent of GDP in 2021 (2022), respectively, while some metal and mineral exporters (Botswana, the Democratic Republic of Congo, Ghana, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe) will also benefit from favorable terms of trade shocks from the war.

“Given limited trade exposure, the impacts of the Russia-Ukraine conflict are expected to be negligible,” reads the report.

WB expects Sub-Saharan Africa growth to be at 3.9 and 4.2% in 2023 and 2024 respectively.

Of the region’s three largest economies, South Africa’s growth is expected to decline by 2.8 percentage points in 2022, dragged by persistent structural constraints, while Angola and Nigeria are projected to continue with the momentum of 2021, up by 2.7 and 0.2 percentage points, respectively, thanks partly to elevated oil prices and good performance of the non-oil sector, according to the report.

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“Growth contraction in 2021 was associated with inflationary effects in non-resource-rich countries.”

Rwanda and the Seychelles are expected to register the biggest growth moderation in 2022, down by 4.1 and 3.3 percentage points, respectively, followed by Ethiopia (3 percentage points), South Africa (2.8 percentage points), Zimbabwe (2.2 percentage points), Madagascar (1.8 percentage points) and Kenya (1.7 percentage points).

The report also found that Angola and the Republic of Congo will record surpluses of 9.1 (11) and 9 (15.3) percent of GDP in 2021 (2022), respectively, while some metal and mineral exporters (Botswana, the Democratic Republic of Congo, Ghana, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe) will also benefit from favorable terms of trade shocks from the war – HARARE

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