Economy

LAGOS (Capital Markets in Africa) – The International Monetary Fund projected real GDP growth in emerging markets and developing economies at 4.5% in 2019, down from its October 2018 forecast of 4.7%, and compared to growth rates of 2% for advanced economies and 3.5% for the global economy. In comparison, it estimated the emerging markets and developing economies’ real GDP growth at 4.6% in 2018. It noted that emerging markets and developing economies have faced challenging external conditions in the past few…

LUSAKA (Capital Markets in Africa) – Zambia’s Finance Minister Margaret Mwanakatwe said she’s in talks with the International Monetary Fund about securing a financial package and has taken the necessary steps to ensure the southern African nation qualifies for support. “I would want to see a program with the IMF, I think it would be good for us,” Mwanakatwe said in an interview in Cape Town on Tuesday. “I would love to see something in place by…

CAIRO (Capital Markets in Africa) – The International Monetary Fund told Egypt to push ahead with efforts to curb inflation, cut debt and allow for a more flexible exchange rate after signing off on a loan tranche of about $2 billion. In a statement following the IMF’s approval on Tuesday to release the fifth installment of Egypt’s $12 billion loan after a two-month delay, the fund said its macroeconomic outlook remains favorable and praised the government’s enactment of policies. Even so,…

LAGOS (Capital Markets in Africa) – Citi Research expected the Nigerian economy and the naira to remain stable in the first half of 2019. It said that most politicians and policymakers are seeking to maintain macroeconomic stability in the country amid potential political uncertainty around the national elections that are scheduled in February 2019. It estimated that real GDP growth could have slightly increased in the fourth quarter of 2018, and expected it to further…

LAGOS (Capital Markets in Africa) – The International Monetary Fund projected real GDP growth in the economies of the West African Economic & Monetary Union (WAEMU), which consist of Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo, at more than 6% annually over the medium term. It said that achieving this growth rate is conditional on all member countries making a strong commitment to implement their fiscal consolidation and development programs, which…

ACCRA (Capital Markets in Africa) – With Ghana’s inflation rate barely in single digits, the central bank’s suggestion that it’s time to aim even lower may be premature. Price growth has been inside the target band of 6 percent to 10 percent for only nine months after years of double-digit inflation and would have to remain there for much longer to convince investors a lower rate is sustainable, according to economic analysts including Databank Group’s Courage…

ACCRA (Capital Markets in Africa) – Ghana will reap the rewards of higher investor confidence and lower borrowing costs if it can stick to sound financial policies without the supervision of the International Monetary Fund, the lender said. West Africa’s second-largest economy faces a test to maintain economic gains and fiscal discipline after its almost $1 billion bailout program with the IMF ends in April. Authorities are aware of the potential gains of staying the…