Russian-Ukrainian conflict, high loan costs and now US customs duties: the International Monetary Fund (IMF) has reviewed its growth forecasts for sub-Saharan Africa by 2025 and 2026, due to “a succession of shocks,” said one of its officials on Friday. The fund provides a growth of 3.8% (instead of 4.2%) this year and 4.2% (instead of 4.4%) by 2026.
“Since the COVVID, the region has experienced a succession of shocks. The conflict between Russia and Ukraine has led to a strong increase in food prices, US guidance rates have increased and there has been an increase in uncertainty since the announcement of US customs tasks,” said Amadou Sy, director of studies in the department of Africa of the IMF. By imposing customs tariffs of at least 10% in most products entering the United States, the president of the United States, Donald Trump, threatens the general economic slowdown.
He quotes “The deceleration in the global demand” that will affect Africa by Ricochet, “the fall in raw material prices” for countries that are producers and “the cost of financing that remains too high”, with US rates that are even more than 4%.
A suspension of American aid would have strong consequences
In early May, the American Federal Reserve (FED) maintained its interests not changed, saying that it could not predict the repercussions of customs duties. In a report published at the end of April, the IMF also warned about the fact that the prosperity of the continent “will depend on the maintenance of external aid”, at a time when the United States has announced the suspension of most of its external aid.
Amadou Sy warns about the consequences of this decision on countries that face “huge challenges” in matters “of health, education and even infrastructure”, and that have this help to complete their budgets.
Source: BFM TV
