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Africa’s pulse. An analysis of issues shaping Africa’s economic future

Africa’s pulse. An analysis of issues shaping Africa’s economic future

Economic growth in Sub-Saharan Africa is estimated to have picked up to 2.6 percent in 2017 from 1.5 percent in 2016. This upswing reflected, on the supply side, rising oil and metals production, encouraged by recovering commodity prices, and improving agricultural conditions following droughts. On the demand side, growth was supported by a rebound in consumer spending as inflation moderated, and a recovery in fixed investment as economic activity picked up among oil and metals exporters. The scope for demand-side policies to support growth generally is limited. Fiscal policy looks set to remain tight, constrained by the need to tackle rising debt levels and rebuild buffers to enhance resilience. On the other hand, easing price pressures, due to ongoing improvements in agricultural production and greater currency stability, allow for a more accommodative monetary stance in some countries.[…]