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IMF Warns Inflation Endangers African Economies
The International Monetary Fund has raised its forecast for Sub-Saharan Africa's economic growth in 2026 to 4.5%. However, it warned that the anticipated rise in inflation—reaching 4.3% in 2026 and 5% in 2027—combined with higher borrowing costs and decreasing aid, threatens the stability of economic growth in the region. The Fund also emphasized the need to adopt flexible and targeted monetary policies based on data to regain control over inflation. It confirmed that debt service consumes approximately 12% of government revenues, with borrowing costs increasing due to higher U.S. Treasury yields. Additionally, the phenomenon of El Niño is expected to reduce growth by 0.5% and increase inflation by 2.6% in 2027, deepening the economic challenges faced by the region.
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