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