Seven African countries have exhibited economic resilience in recent past that saw them post annual growth rate above 5.4 per cent in 2015-2017, according to a new World Bank report released yesterday.
The seven include Rwanda, Côte d’Ivoire, Ethiopia, Kenya, Mali, Senegal and Tanzania, said the latest Africa’s Pulse, a bi-annual analysis of the state of African economies conducted by the World Bank.
These economies, the World Bank said, registered upswing in economic performance partly on account of strong domestic demand. “These countries house nearly 27% of the region’s population and account for 13% of the region’s total GDP,” it said in a press release issued yesterday.
Economic growth in Sub-Saharan Africa is rebounding in 2017 after registering the worst decline in more than two decades in 2016, the Bank said.
“The region is showing signs of recovery, and regional growth is projected to reach 2.6% in 2017,” the World Bank said.
Nigeria, South Africa, and Angola, the continent’s largest economies, are seeing a rebound from the sharp slowdown in 2016.
“The global economic outlook is improving and should support the recovery in the region.” Africa’s Pulse notes that the continent’s aggregate growth is expected to rise to 3.2% in 2018 and 3.5% in 2019, reflecting a recovery in the largest economies.
“It will remain subdued for oil exporters, while metal exporters are projected to see a moderate uptick. GDP growth in countries whose economies depend less on extractive commodities should remain robust, underpinned by infrastructure investments, resilient services sectors, and the recovery of agricultural production.”
“As countries move towards fiscal adjustment, we need to protect the right conditions for investment so that Sub-Saharan African countries achieve a more robust recovery,” Albert G. Zeufack, World Bank Chief Economist for the Africa Region, was quoted as saying. “We need to implement reforms that increase the productivity of African workers and create a stable macroeconomic environment. Better and more productive jobs are instrumental to tackling poverty on the continent.
“Countries also have to undertake much-needed development spending while avoiding increasing debt to unsustainable levels.”
The report calls for the urgent implementation of reforms to improve institutions that foster private sector growth, develop local capital markets, improve infrastructure, and strengthen domestic resource mobilization, according to a summary of the report.
Source: The New Times