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Africa’s economic growth stagnant – World Bank

October 4, 2016 4:48 pm

A fresh World Bank report says economic growth in sub-Saharan Africa is likely to slip to 1.6 percent this year, its lowest level in two decades.africas-economic-growth-stagnant-world-bank

The bank said the weakening is due to continuing struggles in the continent’s largest economies, South Africa and Nigeria. Africa has been one of the world’s fastest growing regions over the past decade, but a commodities slump has hit its oil and mineral exporters hard, bringing growth down to 3 percent in 2015.

This sharp decline in aggregate growth reflects the challenging conditions in three of the largest economies in Africa, Nigeria, South Africa, Angola.

However, other countries, including Ethiopia, Rwanda and Tanzania, have continued to record GDP growth above 6 percent, according to “Africa’s Pulse”, the Bank’s twice-yearly analysis of economic trends.

According to the report, in Nigeria, GDP contracted during the first two quarters of the year due to low oil revenues and a fall in manufacturing, among other things. In South Africa, the economy contracted slightly in the first quarter, before rebounding in the second quarter, thanks to an increase in mining and manufacturing output.

“This sharp decline in aggregate growth reflects the challenging conditions in three of the largest economies in Africa, Nigeria, South Africa, Angola. As these countries are facing strong headwinds from the decline in commodity prices, the tightening of financing conditions and policy uncertainties at home,” said Albert Zeufack, World Bank chief economist for Africa.

Oil exporters in Sub-Saharan Africa have continue to experience decline in economic growth due to shocks from the collapse of commodity prices.

Zeufack said: “The quality of export and diversification is more advanced than in other economies. More importantly these economies do have more effective public institutions. This is critical for making growth happen.”

According to some analysts increasing agricultural productivity on the continent is central to transforming Sub-Saharan Africa.

Author: Gesture Chidhanguro

Africa’s economic growth stagnant – World Bank Reviewed by on . A fresh World Bank report says economic growth in sub-Saharan Africa is likely to slip to 1.6 percent this year, its lowest level in two decades. The bank said A fresh World Bank report says economic growth in sub-Saharan Africa is likely to slip to 1.6 percent this year, its lowest level in two decades. The bank said Rating: 0
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