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African Economies Set For Uneven Post-Coronavirus Growth, Says Fitch Solutions - African Business Magazine
African Economies Set For Uneven Post-Coronavirus Growth, Says Fitch Solutions - African Business Magazine
Emerging markets are set to rebound faster than developed economies, but
Asia will outperform sub-Saharan Africa and Latin America. Global barriers
https://africanbusinessmagazine.com/uncategorised/continental/african-economies-set-for-uneven-post-coronavirus-growth-says-fitch/ Page 1 of 3
African economies set for uneven post-coronavirus growth, says Fitch Solutions - African Business Magazine 08/10/2020, 12:22
South Africa’s economy was hardest hit in the second quarter of this year as
the country pursued one of the world’s strictest lockdowns. GDP is not
expected to return to 2019 levels until 2025, while official unemployment
languishes at 23.3%.
East Africa will grow by 3.3% in 2021, driven primarily by growth in Kenya,
Ethiopia and Tanzania. Fitch Solutions predicts that the Kenyan economy
will rebound to 4.2% in 2021 driven by an uptick in household
consumption, though net exports will begin to weigh on growth in the long
term.
Ethiopian growth could recover to 4.1% in 2021, from just 1.7% in 2020,
but could remain well below the previous five-year average of 8.7%.
https://africanbusinessmagazine.com/uncategorised/continental/african-economies-set-for-uneven-post-coronavirus-growth-says-fitch/ Page 2 of 3
African economies set for uneven post-coronavirus growth, says Fitch Solutions - African Business Magazine 08/10/2020, 12:22
“If we were to see much more significant unrest like in 2010 and 2011,
then of course we would be looking to revise our forecast down,” said
William Attwell, Fitch Solutions’ senior country risk analyst.
Given continuing low oil prices of less than $40 a barrel, Nigeria continues
to drag on growth in the region. The economy is likely to contract by 6% in
2020, based on a sharp fall in net oil exports, private consumption and
investment.
Elsewhere, Ghana could bounce back faster than most of its peers on the
continent with growth of 4.8% predicted in 2021. The rebound is the result
of one of Africa’s shortest lockdowns and growing demand for Ghana’s
commodity exports.
Themes to watch across Africa in the medium term include several high
stakes elections, incremental reform progress, persistent fiscal pressures
and rising security threats, according to Fitch Solutions.
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