BREAKING: Nigeria’s Sluggish Growth Forces World Bank To Cut Sub-Saharan Africa's 2018 forecast
The sub-Saharan Africa will not grow as expected this year.
The World Bank has cut its economic growth forecast for sub-Saharan Africa this year to 2.7% from an earlier forecast of 3.1%.
This is mainly because of slower-than-expected growth in the continent’s bigger economies – Nigeria, Angola and South Africa - the bank said on Wednesday.
The region, which had posted a fairly fast average growth rate in the years leading up to 2015, suffered a loss of momentum in economic output after commodity prices crashed in 2015-16, Reuters reports.
In April, the World Bank had predicted that the recovery would gather pace this year, with average growth expected at 3.1%, up from 2.3% last year.
“The slower pace of the recovery in Sub-Saharan Africa ... is explained by the sluggish expansion in the region’s three largest economies, Nigeria, Angola, and South Africa,” the bank said in a statement.
Lower oil production in Angola and Nigeria offset higher oil prices, and in South Africa, weak household consumption growth was compounded by a contraction in agriculture, the World Bank said.
The rest of the countries in the region have been growing steadily this year, the bank said, including those that don’t depend on commodities, such as Ivory Coast, Kenya and Rwanda.
Albert Zeufack, the World Bank’s chief economist for Africa, urged governments in the region to stop wasting money but focus on boosting productivity to support the region’s economic recovery.
Don't forget to share this story with your friends.