IMF Projects Economic Growth Rates for Sub-Saharan Africa and Ghana in 2023.
The International Monetary Fund (IMF) has predicted a 3.8% growth rate for Sub-Saharan Africa in 2023, an increase from the October 2022 projection, despite the lingering effects of the COVID-19 pandemic.
The IMF has confirmed that Ghana’s GDP forecast will be 2.8%, lower than the expected growth for the African region.
The January 2023 World Economic Outlook report indicates that Nigeria’s growth rate has increased as a result of measures taken to address insecurity issues in the oil sector, leading to a small upward revision for 2023 by 0.1 percentage point.
On the other hand, South Africa’s growth rate is projected to drop to 1.2% in 2023, more than half the 2022 growth rate, due to weaker external demand, power shortages, and structural constraints.
The report also projects that global growth will fall to 2.9% in 2023 before rising to 3.1% in 2024, which is still below the 2000-19 annual average of 3.8%.
The decline is attributed to the rise in central bank rates to fight inflation, especially in advanced economies, and the ongoing war in Ukraine.
Despite this, the report does not predict negative growth in global GDP or global GDP per capita, which is common during global recessions.