BUSINESS NEWS | GHANA AND BEYOND š 06/10/2023
š©Ghanaās inflation of 40.1% is the 4th highest in Sub-Saharan Africa in 2023, the World Bank October 2023 Africa Pulse Report has revealed. Zimbabwe is 1st with more than 80% inflation and is followed by Sudan (60%) and Sierra Leone (42%). According to the report, food and energy prices are still contributing to driving headline inflation in most countries in the region. By July 2023, it said, nearly half of the countries in the region with monthly available information on food prices (20 of 41 countries) had double-digit year-on-year rates of food inflation, with the fastest increases experienced in Burundi, Ghana, Malawi, Sierra Leone, Sudan, and Zimbabwe.
š©Sub-Saharan Africaās economic outlook remains bleak amid an elusive growth recovery. According to the latest World Bank Africaās Pulse report, rising instability, weak growth in the regionās largest economies, and lingering uncertainty in the global economy are dragging down growth prospects in the region. Economic growth in Sub-Saharan Africa is forecast to decelerate to 2.5% in 2023, from 3.6% in 2022. South Africaās GDP is expected to only grow by 0.5% in 2023 as energy and transportation bottlenecks continue to bite. Nigeria and Angola are projected to grow at 2.9% and 1.3% respectively, due to lower international prices and currency pressures affecting oil and non-oil activity.
š©The World Bankās October 2023 Africa Pulse report underscores that the African Continental Free Trade Area (AfCFTA) holds significant potential for job creation, potentially yielding approximately 18 million new jobs. The report emphasizes that infrastructure acts as a critical barrier for new businesses, hindering job growth through impediments to firm entry, high operational costs, and limited export competitiveness. These challenges have particularly impacted the energy, digital infrastructure, and transportation sectors across Sub-Saharan Africa, the report notes.
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