World Bank Cuts sub-Saharan Africa Growth Forecast Over Sudan Crisis

Moatinoon
The World Bank has lowered its 2024 growth forecast for sub-Saharan Africa to 3%, down from 3.4%. This change is primarily due to Sudan’s ongoing civil war, which has severely damaged its economy.

Despite this, the region’s growth is expected to surpass last year’s 2.4% because of higher private consumption and investment. In its report, the World Bank stated that while moderating inflation may allow policymakers to reduce high lending rates, the growth forecasts face risks from conflict, climate events, and high debt servicing costs.

The report also revealed that countries such as South Africa and Nigeria are expected to experience modest growth, while Kenya’s economy may expand by 5% this year.

According to Andrew Dabalen, the World Bank’s chief economist for the Africa region, the continent needs larger levels of investment than it is currently getting to grow faster and reduce poverty.