NEW YORK (S&P Global Ratings) June 16, 2021--Sub-Saharan Africa (SSA) will likely be among the world's slowest growing regions in 2021. The size of the economies of five key SSA countries (Ethiopia, Ghana, Kenya, Nigeria, and South Africa) will be 6.6% smaller than the pre-pandemic long-run trend-based estimate by the end of 2024.
Pandemic-induced GDP growth shock has hit the SSA sovereigns' fiscal metrics, while an expected slow recovery will continue to contribute to existing challenges in the region.
SSA corporations are recovering, but remain subject to longstanding red tape and government failures, which have been amplified by the pandemic and are sources of operational friction.
The SSA banking sectors' growth prospects remain subdued due to the pandemic's lingering impact, profitability levels may recover to pre-crisis levels after 2022, while credit losses moderate.
This report was created in response to growing interest from investor's and key market participants for emerging markets. We are now expanding our coverage of key emerging economies across the EMEA region. We will now produce quarterly articles alternating our focus within four sub-regions, including Central Asia, Eastern Europe, Middle East, and Africa. Our articles will take a deep dive into the macroeconomic panorama and its effects over our sovereign, corporate and bank ratings.
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To read all our Emerging Markets Focus Research: https://www.spglobal.com/ratings/en/research-insights/topics/emerging-markets-focus
This report does not constitute a rating action.
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