World Bank Group2016-07-122016-07-122016-06-01https://hdl.handle.net/10986/24661The external environment confronting Sub-Saharan Africa (SSA) is expected to remain difficult in the near term. Commodity prices are expected to remain low, and in 2016, growth in the region isforecast to drop to 2.5 percent from 3.0 percent in 2015 (World Bank forecast). There is considerable variation in economic performance across countries, with the slowdown concentrated among the region's largest commodity exporters. Growing economic vulnerabilities, amid weakened policy buffers, continue to pose challenges for policy makers. The balance of risks to the outlook remains tilted to the downside. The global risks include: (i) a sharper than expected slowdown in China (as the country rebalances growth toward consumption and services), (ii) a further decline in commodity prices, and (iii) tighter global financing conditions that would result in higher borrowing costs and reduced sovereign bond access for emerging and frontier countries. On the domestic front, delays in adjustment to external shocks in affected countries would create policy uncertainties that could weigh on investor sentiment and weaken the recovery.en-USCC BY 3.0 IGOAUCTIONTARIFFSMONETARY POLICYDEFICITDURABLE GOODSFOREIGN DEBTSTOCKFISCAL DEFICITSINTERESTFOREIGN EXCHANGE MARKETFOREIGN CURRENCY RISKGOVERNMENT SPENDINGEXCHANGEGOVERNMENT REGULATIONBALANCE OF PAYMENTSECONOMIC DEVELOPMENTSINTERNATIONAL BOND MARKETLIQUIDITYDEVELOPING COUNTRIESDOMESTIC MARKETDOMESTIC DEBT MARKETEXPORTERSREVENUESFISCAL POLICYBONDSTAXCASH TRANSFERINCOME TAXLONG-TERM INVESTMENTFOREIGN EXCHANGE MARKETSRESERVEMARKET ACCESSCENTRAL BANKSINTERNATIONAL BANKINFLATIONDEBT BURDENSDEBT BURDENDEBT INTERESTCREDIBILITYEMERGING MARKET ECONOMIESBUDGETCENTRAL BANKPOLICY RESPONSETRADE BALANCEOIL PRICESFINANCIAL SUSTAINABILITYAGRICULTURAL COMMODITIESCURRENCYPOLICY RESPONSESDISBURSEMENTCOMMERCIAL BANKINCOME GROWTHINFLATIONARY PRESSURESBOND ISSUANCEFOREIGN CURRENCY RISKSTRADINGOPTIONSINTERNATIONAL BONDINTEREST RATESMONETARY FUNDCURRENCY DEPRECIATIONSFLEXIBLE EXCHANGE RATESOVEREIGN BONDEMERGING MARKETMARKETSDEBTPRIVATE INVESTMENTRETURNINTERNATIONAL DEVELOPMENTINFLATION RATEDEFICITSINTERNATIONAL DEBTBANK LIQUIDITYDOMESTIC DEBTDIRECT INVESTMENTBORROWING COSTSDEBT SERVICEGROSS DOMESTIC PRODUCTCASH TRANSFERSMONETARY AUTHORITIESCOMMODITY PRICEFINANCEFIXED INTEREST RATESFOREIGN CURRENCYPUBLIC INVESTMENTMARKET ECONOMIESMACROECONOMIC STABILIZATIONCURRENT ACCOUNT DEFICITSTAXESPRICE CHANGEFISCAL DEFICITEXPENDITUREDEBT LEVELSEMERGING MARKETSINCOME TAXESINVESTORSCURRENCY RISKSFEDERAL RESERVEINTEREST PAYMENTSGOODFIXED INTERESTTRANSPARENCYBOND AUCTIONMARKET DATAFINANCIAL CRISISFUTUREFOREIGN DIRECT INVESTMENTGOVERNMENT SUBSIDYPURCHASING POWERINVESTOR CONFIDENCEGOVERNMENT EXPENDITUREINVESTMENT PROJECTSBOND MARKETREPAYMENTEXPENDITURESISSUANCEPRIVATE PARTIEST-BILLSHARESBALANCE SHEETT-BILL RATEMARKETFOREIGN EXCHANGEDEBT RATIOSPUBLIC DEBTMARKET CONFIDENCECURRENCIESGOVERNMENT POLICIESDEBT MARKETSARREARS ACCUMULATIONDEBT MARKETINVESTORGOODSGOVERNMENT SUBSIDIESDURABLESTOCKSINVESTMENTBONDEUROBONDCOMMERCIAL BANKSSHAREPOVERTYINTEREST COSTSTARIFFCURRENCY RISKREVENUEINTERNATIONAL DEBT MARKETSEXTERNAL DEBTINVESTMENTSFINANCIAL SUPPORTLENDINGPUBLIC SECTOR DEBTCREDIT GROWTHEXCHANGE RATEGOVERNMENT INVESTMENTDEBT SERVICINGCOMPETITIVE BIDDINGCOMMODITY PRICESARREARSINTERNATIONAL INVESTORSEXTERNAL BORROWINGTAX OBLIGATIONSReportWorld Bank10.1596/24661