Sub-Saharan African Countries Struggle to Restore Macroeconomic Stability Amid Great Expectations
According to the IMF report "Reforms amid Great Expectations", sub-Saharan African countries are striving to restore macroeconomic stability through crucial but complex reforms. Regional growth, projected at 3.6% in 2024, remains moderate and uneven, although a slight rebound is expected in 2025.
However, tight financing conditions and social pressures, fueled by poverty, rising living costs, and fragile governance, complicate their implementation. Policymakers must balance economic stability and development while protecting the most vulnerable and strengthening public trust.
To avoid increased vulnerabilities, most countries in the region must reduce their macroeconomic imbalances. Authorities face three major challenges: adjusting interest rates despite uncertainty about inflation, balancing debt reduction and budget pressures while preserving social spending, and managing necessary currency depreciations that can exacerbate inflation and affect financial stability. These critical decisions require inclusive and adaptive policies to maintain stability while supporting development.
