How Robust Is the Link Between Growth and Fiscal Consolidations Amid Uncertainties? A Reassessment for Sub-Saharan Africa

We revisit the relationship between fiscal tightening and economic growth within the Sub-Saharan African context, employing a local projection framework augmented with instruments. In contrast to the conclusions reached by Badru et al. (2025), our findings highlights that fiscal consolidation triggers the growth-depressing effect, independent of the estimation technique used. This contractionary impact intensifies under heightened global uncertainty – whether gauged through geopolitical tension metrics or economic policy unpredictability measures.

Author: Miaomiao; Jamel; Emilson, Tao; Saadaoui; Silva
Volume: 2025.7
Publisher: INFER
Year: 2025
No. of pages: 18
Category:
Working papers
INFER research
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