In the month of May, 14 countries released their inflation data. Of the 14, inflation in 9 increased and 5 declined. The IMF is forecasting SSA’s average inflation to decline to 8.1% in 2019. However, with the current trend, it is likely that the general level of inflation will increase as the region grapples with growth problems and financial system fragilities.
With over 10 countries having held or will hold elections this year in SSA, the region’s two largest economies, Nigeria and South Africa, have successfully gone through the process and face the challenge of ratcheting up GDP growth. The 2 giants grew by an average of a mere 1.3% in 2018, as against the regional average of 3.4%.
One other country of interest is Zimbabwe. The country’s economic crisis may be slowly coming to an end.
On a lighter note, history was made on May 19 when three Africans, Pierre Emerick Aubameyang (Gabon), Sadio Mane (Senegal) and Mohammed Salah (Egypt) jointly shared the English Premier League’s Golden Boot. Still on the growing importance of services, Nollywood generates over $2bn in annual revenue and is now Nigeria’s 3rd largest export. This confirms the notion that GDP composition in African countries is changing from commodity dependence to the export of services. The fact that 3 Golden boot winners are African, spanning across the continent, validates this hypothesis.
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