In 2024, several African nations are grappling with economic challenges stemming from a limited money supply, which significantly impacts their economic stability and growth potential.
According to a recent report by the International Monetary Fund (IMF), these countries have the lowest money supply as a percentage of their GDP:
- Côte d’Ivoire: 11.9%
- Zimbabwe: 14.2%
- São Tomé and Príncipe: 16.7%
- Niger: 17.1%
- Sierra Leone: 18.3%
- Equatorial Guinea: 19.0%
- Angola: 19.5%
- Ethiopia: 21.3%
- Uganda: 21.5%
- Chad: 21.6%
A low money supply often means there is not enough liquidity in the economy, which can deter both local and international investors.
This lack of liquidity makes it challenging for these countries to implement effective economic policies, especially in times of economic downturns.
Moreover, a reduced money supply can lead to currency devaluation, decreasing purchasing power, and aggravating inflation and trade imbalances.
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