Sub-Saharan Africa: What Nigeria And South Africa May Be Doing Wrong
In sub-Saharan Africa, things are hard. And this is simply because the economy is not doing that well.
As at the beginning of this year, it was thought that the region’s economy will do better than last year, but alas, sluggish growth in the region’s biggest economies – Nigeria and South Africa – means there isn’t much hope for the region’s economy.
A Reuters poll on Friday found that the region’s “economic recovery will progress slowly into next year, as the continent’s biggest drivers struggle to move into higher gear despite a healthier global economy”.
According to Reuters, “Commodity prices have improved, and the global economy is in good shape, but Nigeria and South Africa, the two economies that normally push the continent into faster growth, are struggling to reclaim their potential.”
In the poll taken this week, median forecasts from economists and analysts showed Nigeria - Africa’s biggest economy - will grow 2.7% next year, 0.3% points slower than forecast in July.
Nigeria recovered from its worst downturn in 25 years last year, but growth is still fragile. It dipped to 1.50% year on year between April and June.
A separate survey two days ago showed South Africa - the continent’s second-biggest economy, which together with Nigeria makes up over half of sub-Saharan growth - is forecast to grow just 1.4%.
A senior emerging markets economist at Capital Economics, John Ashbourne was quoted by Reuters as saying, “we think that growth in both countries will remain disappointing next year”.
Don't forget to share this story with your friends.