The World Bank raised its forecast for economic growth in sub-Saharan Africa, largely thanks to stable prices that have prompted easing by policymakers.
The region is forecast to grow 3.8% this year, up from a prior projection of 3.5%, with Côte d’Ivoire, Ethiopia, and Nigeria among 30 countries on the continent whose growth forecasts were increased.
The bank said the overall growth picture had improved due to slowing inflation, interest rate cuts, currency stabilization — “in some cases, appreciation” — and better intra-African trade. These conditions are already producing “a recovery in private consumption and investment,” it said.
A combination of favorable commodity prices and a weak US dollar has helped curb inflation, the bank said, and those conditions are crucial for the trend to continue: Inflation will stay at or below 4% over the next year, it forecast, after rising above 9% in 2022.
