Growth holding up amid global headwinds

The economies of sub-Saharan Africa have so far proved resilient in the face of mounting global headwinds. Q2 GDP data released over the past month have shown a pick-up in growth in several of the region’s major economies, driven for the most part by strengthening domestic demand. Admittedly, leading indicators suggest that growth in the region is likely to slow a little in Q3. What’s more, unrest in the mining sector is likely to have been a significant drag on output in South Africa in recent months. But inflation is falling in most countries, meaning there is room for policymakers to act. We expect interest rates to be cut in South Africa, Kenya, and Uganda by the end of the year.