IMF: Sub-Saharan Africa's 2025 growth forecast remains at 4.2%

Sub-Saharan Africa's economic outlook remains steady, with growth projected at 4.2 per cent in 2025, remaining unchanged, according to the World Economic Outlook. This stable growth trajectory is expected to continue into 2026, albeit with a slight downward revision from our previous forecast. Meanwhile, inflation is anticipated to decline at a slightly faster pace in 2025, although it will remain higher than previously predicted in 2026. Deniz Igan, Division Chief of the IMF Research Department, discussed the region's economic prospects in an interview with CNBC Africa. Igan highlighted the financial risks facing the region, particularly in light of global sources of risk that could impact sub-Saharan African countries. The potential strength of the US dollar may lead to tighter global financial conditions, posing downside risks to growth. Despite these challenges, Igan remains cautiously optimistic about the economic outlook for the region. In terms of specific countries, South Africa is projected to see modest growth of 1.5 per cent in 2025, with a slight uptick to 1.6 per cent in 2026. These forecasts are in line with the IMF's earlier projections from October. Inflation in South Africa is expected to decrease, driven by various factors including monetary policy actions, declining global oil prices, and a more stable output gap. The country experienced slower growth in 2024 due to factors such as drought-related declines in agricultural activity, but reforms and policy measures are expected to boost economic activity moving forward. Overall, the IMF report indicates a relatively positive outlook for sub-Saharan Africa, despite potential risks on the horizon. The region's resilience and ability to navigate challenges will be key in sustaining economic growth in the coming years.