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Browsing: global inflation
Economic growth in Sub-Saharan Africa (SSA) softened markedly in 2022 to 3.4 per cent as inflationary pressure, weak external demand, and tighter global financial conditions, tempered post-pandemic recoveries in many countries.
Food price pressures, already significant even before the pandemic, have intensified further because of adverse weather shocks, supply disruptions worsened by Russia’s invasion of Ukraine, increased fragility and insecurity, and, in some countries, large currency depreciations.
According to the World Bank, annual food price inflation exceeded 20 per cent in over a quarter of all countries last year, dampening growth in real income and consumer demand, and deepening food in security.
A substantial deceleration in global growth and falling non-energy commodity prices have weighed on economic activity across SSA, particularly in metal exporters.
Despite a recent easing of global food and energy prices, import costs remained elevated, contributing to widening current account deficits.
Pandemic-induced weakness in fiscal positions lingered,
… 
McKinsey’s report notes that the wages of consumers are steadily being eroded. Wages in the largest economies reportedly flatlined; in other words, no significant change in their levels was recorded. Prior to the pandemic, the same wages were said to have increased, giving workers the upper hand in negotiations. The pandemic, however, drastically altered that state of affairs. Wages in developed markets post the pandemic are also related, but the advent of inflation has checked that growth and, in some instances, set the trend backwards.
In the United Kingdom, there have been reports of wages being lower year on year.
The culmination of these factors is that the outlook for global economic growth will be lower this year than last. McKinsey expects central banks to increase interest rates more assertively to deal with inflationary pressure. The risk of recession is becoming more and more prevalent.…
It remains uncertain how long this economic downturn lasts or which businesses and investors will remain standing when it ends. Nevertheless, many tech startup players believe that the African digital ecosystem will remain relatively unscathed.
This moment provides a chance for Africa-focused funds to flourish. The African tech startup industry offers the funds tremendous possibilities to invest at a low cost. The best businesses find footing at times like these.…
- A report by Turner & Townsend revealed that the global economy is facing intense challenges, despite expecting a robust recovery in 2022 following two tough years of the COVID-19 pandemic
- The war in Ukraine and renewed COVID-19 lockdowns in China have destabilised the supply chain further, causing widespread disruption
- Higher energy costs and climate change-induced floods, storms and fires are all combined to test the resilience of the global economy
A new report has indicated that the global economy is facing intense challenges, despite expecting a robust recovery in 2022 following two tough years of the COVID-19 pandemic.
The Global economic outlook: A disrupted recovery by Turner & Townsend revealed that despite 2022 starting on a solid base, the war in Ukraine and renewed COVID-19 lockdowns in China have destabilised the supply chain further, causing widespread disruption.
The report further noted that higher energy costs and climate change-induced floods, storms …