Economic growth in major sub-Saharan African economies will slow this year, in line with weaker global growth making the environment less favorable and high interest rates discouraging investment. The rating agency Standard & Poors (S&P) said so in a report. This year’s report covers economic forecasts for Angola, the Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Mozambique, Nigeria and South Africa.
S&P expects the gross domestic product of eight sub-Saharan African economies to expand by 2.9% in 2023, down from 3.4% in 2022. The rating agency expects the South African economy to grow by 0.7 % this year, down from a 1.6% forecast provided in June 2022 due to the intensifying electricity crisis.
The Democratic Republic of the Congo and Ethiopia were poised to be growth leaders in 2023, with a 6% GDP expansion this year supported by mining in the Congo and a recovery in investment in Ethiopia after the ceasefire the fire between the government and the forces of Tigray, but according to the American rating agency also the RDC and Ethiopia will be in line with the average growth of 3.4% in the eight countries observed.
“The economic environment remains far from growth-friendly, reflecting elevated political uncertainty and above-average systemic financial stress,” S&P said. “Policymakers face a difficult trade-off between managing public debt, especially given higher interest rates, and macroeconomic stability.”
The end of the pandemic, the reopening of the tourism and service sectors, and falling food and fuel prices should bring some relief. [Da Redazione InfoAfrica]
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