World Bank Report Highlights Fiscal Improvement in Sub-Saharan Africa, Nigeria

The World Bank’s latest Africa’s Pulse report has underscored the positive trend of fiscal improvement in Sub-Saharan African countries, including Nigeria. The report highlights ongoing fiscal consolidation efforts as the key driver behind these improvements, albeit at a moderate pace.

According to the report, fiscal balances across the region are witnessing enhancement, with a slight decrease in the median fiscal deficit from 3.8 per cent of gross domestic product (GDP) in 2023 to 3.5 per cent in 2024. Notably, the report identifies Ghana, Kenya, and Nigeria among the nations where fiscal balances are improving due to consolidation measures.

While the majority of countries in the region, 31 out of 46, are anticipated to experience better fiscal balances, the report emphasizes that deficits still persist at significant levels. Despite the improvement, the median fiscal deficit among these 31 nations is expected to narrow from 4.8 per cent of GDP in 2023 to 3.8 per cent in 2024.

The report also underscores the importance of prudent fiscal management, particularly in the context of debt restructuring negotiations. Countries like Ghana and Zambia are cited as examples where debt restructuring negotiations incentivize responsible fiscal practices.

Looking ahead, the World Bank projects a modest decline in the median fiscal deficit for the region, from 3.8 per cent of GDP in 2023 to 3.5 per cent in 2024. This projection reflects the collective efforts of Sub-Saharan African countries to address fiscal challenges and pursue sustainable economic policies.

Overall, the World Bank’s assessment offers a positive outlook for fiscal management in Sub-Saharan Africa, acknowledging the progress made while emphasizing the need for continued diligence and prudent financial stewardship to ensure long-term economic stability and growth.US Baptists Urge House Speaker Johnson to Take Action As Russia Tortures Evangelical Christians

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