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Trouble for the African economy as the world heads toward a global recession according to a UN report

SarahOctober 15, 2022

1 minute read

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The UN Conference on Trade and Development (UNCTAD), recently reported that a global recession may be on the horizon.
The African economy, which is still largely developing, may be unable to brace itself for the hit.
The report notes that the global recession may be worse than the recession experienced during the Covid-19 pandemic.

Due to rising inflation rates, low exports, and increased cost of living, the African financial market is in a bit of a bind.

While the financial markets of some African countries are afloat, others are not so fortunate. Read the story here.

The UN Conference on Trade and Development (UNCTAD), recently reported that developed and developing nations are at risk of a recession following high inflationary rates that are likely to inflict worse damage than the 2020 pandemic.

A global recession will most likely spell disaster for African nations that are already struggling with stabilizing their economies. Global trade will take a huge hit, as prices of imported goods, which a lot of African countries are reliant on, will skyrocket.

A global recession will most likely affect African exports as well as exchange rates against the dollar, the Trade and Development Report 2022 says.

“Today’s growth performance points to a troubling pattern. UNCTAD assessment is that the trend is worsening, with growth expected to decelerate further in 2023, to 2.2%,” the UNCTAD 2022 report subtitled Development prospects in a fractured world: Global disorder and regional responses says.

“The estimated 2.5% growth in 2022 is less than half the growth rate of 5.6 in 2021 when economic activity resumed after the sharpest recession in living memory.”

“The two processes put upward pressure on both producer and consumer prices, even before the war in Ukraine, pushing inflation in advanced economies above established monetary targets and many emerging and developing economies to a level not seen since the first Gulf War in the early 1990s,” the report reads in part.