Africa's Pulse, No. 25, April 2022

Sub-Saharan Africa's recovery from the pandemic is expected to decelerate in 2022 amid a slowdown in global economic activity, continued supply constraints, outbreaks of new coronavirus variants, climatic shocks, high inflation, and rising financial risks due to high and increasingly vulnerable...

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Main Authors:	Zeufack, Albert G., Calderon, Cesar, Kabundi, Alain, Kubota, Megumi, Korman, Vijdan, Raju, Dhushyanth, Abreha, Kaleb Girma, Kassa, Woubet, Owusu, Solomon
Format:	Serial
Published:	Washington, DC: World Bank 2022
Subjects:	MACROECONOMIC POLICY ECONOMIC GROWTH FISCAL POLICY ECONOMIC OUTLOOK COVID-19 PANDEMIC IMPACT
Online Access:	http://hdl.handle.net/10986/37281

id	okr-10986-37281
recordtype	oai_dc
spelling	okr-10986-372812022-07-05T15:23:13Z Africa's Pulse, No. 25, April 2022 Zeufack, Albert G. Calderon, Cesar Kabundi, Alain Kubota, Megumi Korman, Vijdan Raju, Dhushyanth Abreha, Kaleb Girma Kassa, Woubet Owusu, Solomon MACROECONOMIC POLICY ECONOMIC GROWTH FISCAL POLICY ECONOMIC OUTLOOK COVID-19 PANDEMIC IMPACT Sub-Saharan Africa's recovery from the pandemic is expected to decelerate in 2022 amid a slowdown in global economic activity, continued supply constraints, outbreaks of new coronavirus variants, climatic shocks, high inflation, and rising financial risks due to high and increasingly vulnerable debt levels. The war in Ukraine has exacerbated the already existing tensions and vulnerabilities affecting the continent. Given the sources of growth in the region and the nature of the economic linkages with Russia and Ukraine, the war in Ukraine might have a marginal impact on economic growth and on overall poverty—as this shock affects mostly the urban poor and vulnerable people living just above the poverty line. However, its largest impact is on the increasing likelihood of civil strife as a result of food- and energy-fueled inflation amid an environment of heightened political instability. The looming threats of stagflation require a two-pronged strategy that combines short-term measures to contain inflationary pressures and medium-to-long-term policies that accelerate the structural transformation and create more and better jobs. In response to supply shocks, monetary policy in the region may prove ineffective to bring down inflation and other short-run options may be restricted by the lack of fiscal space. Concessional financing might be key to helping countries alleviate the impact of food and fuel inflation. Over the medium term, avoiding stagflation may require a combination of actionable measures that improve the resilience of the economy by shoring up productivity and job creation. Lastly, ongoing actions to enhance social protection—including dynamic delivery systems for rapid scalability and shock-sensitive financing—could be strengthened further to improve economic resilience against shocks and foster investments in productive assets. 2022-04-08T16:46:58Z 2022-04-08T16:46:58Z 2022-04-13 Serial 978-1-4648-1871-4 http://hdl.handle.net/10986/37281 Africa's Pulse;25 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research Publications & Research :: Publication Africa Africa Eastern and Southern (AFE) Africa Western and Central (AFW) Africa Sub-Saharan Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	MACROECONOMIC POLICY ECONOMIC GROWTH FISCAL POLICY ECONOMIC OUTLOOK COVID-19 PANDEMIC IMPACT
spellingShingle	MACROECONOMIC POLICY ECONOMIC GROWTH FISCAL POLICY ECONOMIC OUTLOOK COVID-19 PANDEMIC IMPACT Zeufack, Albert G. Calderon, Cesar Kabundi, Alain Kubota, Megumi Korman, Vijdan Raju, Dhushyanth Abreha, Kaleb Girma Kassa, Woubet Owusu, Solomon Africa's Pulse, No. 25, April 2022
geographic_facet	Africa Africa Eastern and Southern (AFE) Africa Western and Central (AFW) Africa Sub-Saharan Africa
relation	Africa's Pulse;25
description	Sub-Saharan Africa's recovery from the pandemic is expected to decelerate in 2022 amid a slowdown in global economic activity, continued supply constraints, outbreaks of new coronavirus variants, climatic shocks, high inflation, and rising financial risks due to high and increasingly vulnerable debt levels. The war in Ukraine has exacerbated the already existing tensions and vulnerabilities affecting the continent. Given the sources of growth in the region and the nature of the economic linkages with Russia and Ukraine, the war in Ukraine might have a marginal impact on economic growth and on overall poverty—as this shock affects mostly the urban poor and vulnerable people living just above the poverty line. However, its largest impact is on the increasing likelihood of civil strife as a result of food- and energy-fueled inflation amid an environment of heightened political instability. The looming threats of stagflation require a two-pronged strategy that combines short-term measures to contain inflationary pressures and medium-to-long-term policies that accelerate the structural transformation and create more and better jobs. In response to supply shocks, monetary policy in the region may prove ineffective to bring down inflation and other short-run options may be restricted by the lack of fiscal space. Concessional financing might be key to helping countries alleviate the impact of food and fuel inflation. Over the medium term, avoiding stagflation may require a combination of actionable measures that improve the resilience of the economy by shoring up productivity and job creation. Lastly, ongoing actions to enhance social protection—including dynamic delivery systems for rapid scalability and shock-sensitive financing—could be strengthened further to improve economic resilience against shocks and foster investments in productive assets.
format	Serial
author	Zeufack, Albert G. Calderon, Cesar Kabundi, Alain Kubota, Megumi Korman, Vijdan Raju, Dhushyanth Abreha, Kaleb Girma Kassa, Woubet Owusu, Solomon
author_facet	Zeufack, Albert G. Calderon, Cesar Kabundi, Alain Kubota, Megumi Korman, Vijdan Raju, Dhushyanth Abreha, Kaleb Girma Kassa, Woubet Owusu, Solomon
author_sort	Zeufack, Albert G.
title	Africa's Pulse, No. 25, April 2022
title_short	Africa's Pulse, No. 25, April 2022
title_full	Africa's Pulse, No. 25, April 2022
title_fullStr	Africa's Pulse, No. 25, April 2022
title_full_unstemmed	Africa's Pulse, No. 25, April 2022
title_sort	africa's pulse, no. 25, april 2022
publisher	Washington, DC: World Bank
publishDate	2022
url	http://hdl.handle.net/10986/37281
_version_	1764486879310249984

Africa's Pulse, No. 25, April 2022

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