Africa Economic Outlook: Growth to strengthen even as fiscal concerns linger

The threat posed by US trade protectionism to the region, for now, appears muted. An improvement in the terms of trade for most countries should mean less downward pressure on currencies and, alongside low inflation, set the stage for more interest rate cuts. Overall, that’s likely to lead to a modest pick-up in growth. Maintaining fiscal discipline remains critical for many governments, and that will limit the pace of recovery. But even so, public debt concerns will linger. Sovereign debt risks look most acute in Angola and Mozambique.