IMF warns that growth in sub-Saharan Africa is plunging

The International Monetary Fund (IMF) said that growth in the sub-Saharan Africa region is projected to dip to 6 per cent from now until next year, 2009.

In its October 2008 edition on “Regional Economic Outlook: Sub-Saharan Africa”, it indicated that the fall is mainly due to the global food and fuel price shocks. “This has weighed particularly on growth in oil-importing countries and to the global financial market turmoil, which has slowed global growth and demand for Africa’s exports,” it noted.Inflation is expected to rise to 12 per cent during this year, mainly on account of the food and fuel price shock.The IMF warned that as a result of rising prices, particularly in food, poverty may well be on the increase this year.In 2009, inflation should ease to 10 per cent, helped by recent commodity price declines.The IMF added that there are significant risks to the outlook, related to a potentially deeper and longer period of global financial turmoil and resulting slowdown in global activity, as well as substantial uncertainty concerning commodity prices.Nampa”This has weighed particularly on growth in oil-importing countries and to the global financial market turmoil, which has slowed global growth and demand for Africa’s exports,” it noted.Inflation is expected to rise to 12 per cent during this year, mainly on account of the food and fuel price shock.The IMF warned that as a result of rising prices, particularly in food, poverty may well be on the increase this year.In 2009, inflation should ease to 10 per cent, helped by recent commodity price declines.The IMF added that there are significant risks to the outlook, related to a potentially deeper and longer period of global financial turmoil and resulting slowdown in global activity, as well as substantial uncertainty concerning commodity prices.Nampa