Reforms Amid Great Expectations
Sub-Saharan African countries are implementing difficult and much needed reforms to restore macroeconomic stability, and while overall imbalances have started to narrow, the picture is varied. This IMF report includes focused notes addressing critical issues facing the region: the urgent need for job creation, the economic divergence between resource-rich and non-resource-rich countries, and the positive effects of striving for greater gender equality. Policymakers face three main hurdles: regional growth, at a projected 3.6 percent in 2024, is generally subdued and uneven, although it is expected to recover modestly in 2025 to 4.2 percent; financing conditions continue to be tight; the complex interplay of poverty, scarce opportunities, and weak governance - compounded by a higher cost of living and short-term hardships due to macroeconomic adjustment - is fueling social frustration. In this environment, policymakers face a difficult balancing act in striving for macroeconomic stability while working to address development needs and ensure that reforms are socially and politically acceptable.
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