Economy

NEW YORK (Capital Markets in Africa) – The U.S. economy shrank for the first time since 2020, reflecting an import surge tied to solid consumer demand. While the surprise contraction adds to political headaches for President Joe Biden, it’s unlikely to dissuade the Federal Reserve from hiking interest rates aggressively to combat inflation.Gross domestic product fell at a 1.4% annualized rate in the first quarter following a 6.9% pace at the end of last year, the Commerce…

ACCRA (Capital Markets in Africa) – Ghana expects an economic rebound as it moves to open land and sea borders to mark the end of Covid-19 restrictions imposed at the beginning of the pandemic.  “It has been a difficult two years for all of us, and we are seeing light at the end of a very long tunnel,” President Nana Akufo-Addo said in a televised broadcast Sunday. “I assure you that, sooner rather than later, our economy…

KHARTOUN (Capital Markets in Africa) – Economists slammed as unworkable Sudan’s 2022 budget that seeks to more than double tax revenue to replace foreign aid suspended after October’s coup, saying it was likely to fuel more turmoil and anger against the ruling military. The impoverished North African country, which looked like rejoining global markets after the 2019 overthrow of dictator Omar al-Bashir, has revised down its growth target to 1.4% and is racing to find the…

LUANDA (Capital Markets in Africa) – Angola’s economic growth is forecast to accelerate to 2.9% this year from an estimated 0.1% in 2021, boosted by higher oil prices and a relaxation of Covid-19 restrictions, the International Monetary Fund said. “Angola’s economic performance is beginning to improve after years of recession,” the Washington-based lender said in a statement published on its website that includes a final staff report on Angola’s three-year extended arrangement. “Vulnerability remains high,…

Global central banks are set to spend 2022 diverging, as some take on the menace of inflation and others stay focused on boosting economic growth. The pandemic remains a risk to demand the world over, but after triggering a recession in 2020, its subsequent igniting of price pressures has also posed a challenge for monetary policy makers. They enter a new year having to tread carefully. Acting quickly to control prices could end up quashing expansions, especially…

LAGOS (Capital Markets in Africa) – Economists have struggled to see ahead in the pandemic. They’re upbeat about next year, but could easily get blindsided again. The Covid years are littered with predictions that didn’t work out. For anyone looking ahead into 2022, that should be enough to give pause.Most forecasters, including Bloomberg Economics, have as their base case a robust recovery with cooling prices and a shift away from emergency monetary-policy settings. What could…