Description

Sub-Saharan Africa is expected to grow by 4.5 percent in both 2026 and 2027. Global supply adjustment, favorable export receipts in some countries, and earlier reforms have helped cushion the Middle East war shock. But steady regional growth masks different country experiences with slowing growth in non-resource intensive economies and continued resilience in resource-intensive ones. Pre-war fiscal adjustment and declining debt ratios are important achievements, yet high interest burdens, low reserves in many countries, and falling aid leave limited room for absorbing another adverse shock. Risks remain decidedly tilted to the downside. Policies should sustain needed fiscal adjustment, save temporary commodity windfalls, target support to vulnerable households, and contain persistent inflation. Protecting productive investment and enabling private-sector growth are essential to make future shocks less costly and improve longer-term living standards.

More publications in this series: Regional Economic Outlook