Abstract

Against the backdrop of lower commodity prices and a less-supportive global environment, economic activity in sub-Saharan Africa has decelerated sharply. The region’s output is only expected to expand by 1.4 percent in 2016, the worst growth performance in more than 20 years, and the loss in momentum over the last two years has been on par with the deep slowdowns of previous decades (Figure 1.1). While a modest recovery is in the cards for next year, to slightly less than 3 percent, even this will only be feasible provided there is prompt action to address the significant macroeconomic imbalances and heightened policy uncertainty prevalent in several of the region’s largest economies.