‘Modest’ economic growth for SSA region in 2025, IMF report predicts

The report notes that countries in the region are still grappling with macro-economic imbalances and tight financing conditions amid rising social pressures, leaving policymakers facing difficult choices in implementing reforms. 

“Sub-Saharan African countries are navigating a complex economic landscape marked by both progress and persistent vulnerabilities,” said Abebe Aemro Selassie, Director of the IMF’s African Department.  

“While many of the region’s countries are among the world’s fastest-growing economies, resource-intensive countries – particularly oil exporters – continue to struggle with lower growth rates. Inflation is declining but remains in double digits in nearly one-third of countries. Public debt has stabilised at a high level, with rising debt service burdens crowding out resources for development spending.” 

“While we are seeing some improvement in macro-economic imbalances, growth remains insufficient to significantly reduce poverty or address substantial developmental challenges in the region.” 

Economic divergence between resource-rich and non-resource-rich countries 

The report also notes critical issues facing the region: the urgent need for job creation, the economic divergence between resource-rich and non-resource-rich countries, and the positive effects of striving for greater gender equality. 

Against this backdrop, Selassie highlighted priorities for policymakers in the region. “The policy mix should be consistent with the size of macro-economic imbalances, while taking into account the political economy constraints that will affect the pace of reforms,” he said.  

According to Selassie, policymakers must focus on designing reforms that are socially acceptable, including effective communication and consultation strategies and measures to protect the most vulnerable. 

“With continued efforts, sub-Saharan Africa can address its current challenges and move towards more sustainable and inclusive growth,” he concluded. “However, the path ahead requires careful policy calibration and a strong commitment to implementing necessary reforms while managing social pressures.” 

You can download the full report here.