Economic confidence in Africa has risen amid other major continents’ indices dipping back in Q2 2019, findings by the latest Global Economic Conditions Survey (GECS) from the Association of Chartered Certified Accountants(ACCA) and the Institute of Management Accountants(IMA), has revealed.
The poll of more than 140 accountants across Africa noted, despite overall confidence remaining negative, it was one of the few regions to see a rise in this quarter, along with Central and Eastern Europe and South Asia.
All other regions including the US, China, Asia Pacific and the Middle East saw confidence levels dip.
Chief Economist at ACCA, Michael Taylor, highlighted the prospect of lower US interest rates as a positive factor, easing the pressure for capital outflows from Africa.
He said: “Lower US interest rates also allow many economies to ease monetary policy. Despite relative buoyancy in oil prices, many producers are struggling with supply bottlenecks and policy uncertainty. “Investment in some of the large African economies should pick up this year and the GECS measure of investment opportunities is on a strong upward trend with a big jump in Q1 2019.”
However, Taylor warned of vulnerability for African exports, and that the region still faced challenges ahead.
He added: “The global economic slowdown is a downside risk for Africa and China and the euro area – the major destinations for African exports – look especially vulnerable.
“Growth in the region this year is likely to be around 3.5 per cent, an improvement on recent years but still below the rate that will significantly lift per capita incomes.”
