World Bank Group Cuts Sub-Saharan Africa Growth Forecast

The World Bank Group has cut its growth forecast for Sub-Saharan Africa for 2026 from 4.4% to 4.1%, citing the economic fallout from the ongoing Iran war. This conflict has led to sharp increases in fuel and fertilizer costs, threatening investment flows and remittance inflows from the Middle East. Many Sub-Saharan Africa countries face severe fiscal constraints, with debt-servicing costs doubling and nearly half at high risk of debt distress. Vulnerable economies like Kenya, Ethiopia, Burundi, Malawi, and Mozambique are particularly exposed to inflation shocks and reduced remittances. Andrew Dabalen, World Bank Group chief economist for Africa, highlighted the tougher external environment and the uncertain duration of these disruptions.