Exchange Rates and Imf Projections

imf: IMF says the region is likely to recover economically within the shortest period if reforms are undertaken to correct a drop in domestic revenue and the effective management of foreign debt, which has partly affected local exchange rates, according to Xinhua China. According to the IMF projections, the economic growth in Africa is expected to grow at 3 percent in 2017 and improve to 4.5 percent in 2018. "This slowdown will be similar to previous ones. Abebe Selassie, IMF Director of the African Department, said the record dip in economic growth in Africa would be short-lived and it is resulted from the massive drop in commodity prices, including heavy metals and oil, affecting key African countries. "There are four reasons for this slowdown, the drought, low commodity prices, the tighter financing conditions and the delayed policy response in the region," Selassie told reporters during the launch of this year economic outlook for the Sub-Saharan Africa. The delayed policy response as a result of the political uncertainty and elections is partly the reason for this, but if these risks are dealt with, the economies will recover," Selassie added. Speaking at the event, Kenyan Treasury Cabinet Secretary Henry Rotich said the government is preparing a number of laws to ensure that it deals effectively with rising needs to finance large-scale infrastructure projects such as the Standard Gauge Railway project. "We have a Value Added Tax law and a new Income Tax law that is being completed to ensure that there are no free tax exemptions," Rotich said. IMF attributed the economic slowdown in Africa to the tightening conditions for borrowing in order to finance government operations and investments. (news.financializer.com). As reported in the news.