Sub-Saharan Africa growth up by 3% in 2017, says IMF

Economic growth in sub-Saharan Africa is expected to recover to 2.6% in 2017, up from 1.4% last year, according to the International Monetary Fund.

The slight rebound will mainly be driven by a recovery in oil production in Nigeria, increased public spending ahead of elections in Angola, and the end of the drought in South Africa. Meanwhile, six non-oil exporting nations – Burkina Faso, Ivory Coast, Senegal, Tanzania, Rwanda and Ethiopia – will grow at above 6%, with Ethiopia expected to be Africa’s best-performing economy, growing at 7.5%.

The modest economic rebound in sub-Saharan Africa in 2017 follows a dismal performance last year, which was mainly driven by low global oil prices and droughts in Southern and East Africa.

“The overall weak outlook partly reflects insufficient policy adjustment,” said Abebe Aemro Selassie, director of the IMF’s African Department. “The delay in implementing much-needed adjustment policies is creating uncertainty, holding back investment, and risks generating even deeper difficulties in the future.”

The World Bank expects growth in the region to increase to 3.2% in 2018 and 3.5% the following year.

SOURCE: African Business Magazine

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