5 important forecasts about African economies in May you may have missed

In case you missed these forecasts, let's bring you up to speed; focusing on the key takeaways. Note that this is intended to keep stakeholders informed for the purpose of decision making and other necessary actions.

READ: 6 important forecasts about African economies in April you should pay attention to

1. Truce in Ethiopia to improve the country's security outlook

The ceasefire between government forces and the Tigray People's Liberation Front (TPLF) was projected to considerably improve the country's security outlook within the short to medium term. According to Fitch Solutions, the truce would pave the way for some crucial peace talks between the waring parties.

READ: Ethiopia is set to receive $300 million grant from World Bank to rebuild, as fighting subsides

2. Economic growth in Kenya to slow considerably in 2022 but pick up in 2023

The economic impacts of the Russian-Ukrainian war would have very negative impacts on Kenya's economic growth, causing the country's Gross Domestic Product (GDP) to slow to 5.0% in 2022. However, it is expected to rebound to 5.4% in 2023, according to projections by Fitch Solutions.

3. Rising oil production in Gabon is expected to support the country's economic growth in coming years

Between 2022 and 2023, Gabon's GDP is expected to grow by 4.0% and 6.4% respectively, driven by rising oil production in the country. Rising oil production increases the chances for exports and foreign exchange earnings.

4. In Nigeria, elevated inflation would continue to weigh on consumer spending

Although Nigeria's household spending is expected to grow by 3.6% in 2022, Fitch Solutions noted that elevated inflation poses a risk and might eventually impact consumers' purchasing power.

READ: Nigeria's inflation rate accelerates to 16.82% in April, according to latest figures from NBS

5. Rising inflation threatens social stability in Zimbabwe

According to Fitch Solutions, the resurgence of inflationary pressures in Ethiopia would weigh on households' disposable incomes, thus presenting a risk of social instability. Now, while the government has the capacity to contain any civil unrest that may arise, such likely unrests would ultimately disrupt economic activities in the country prior to containment.

READ: 8 most expensive African countries to live in due to high inflation rates