Growth to strengthen in sub-Saharan Africa: IMF

2017-10-11 10:32


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Johannesburg - Economic growth in sub-Saharan Africa is set to accelerate to 3.4% next year, the International Monetary Fund said on Tuesday, citing Nigeria's recovering oil and agricultural sectors.

The IMF said in its latest World Economic Outlook report that the region would grow by 2.6% this year after 1.4% in 2016.

"Growth is expected to rise gradually," it said, while noting that the rate would be uneven and "barely above population growth".

GDP in the west African powerhouse Nigeria contracted by 1.6% in 2016, but is predicted to grow by 0.8% this year and 1.9% next year.

The IMF said Nigeria was benefitting from "recovering oil production and ongoing strength in the agricultural sector", but the lender raised concerns about policy implementation and weakness in the banking system.

Last month Nigeria's economy emerged from recession after five consecutive quarters of contraction triggered by the fall in oil prices that slashed government revenues.

Angola, where Jose Eduardo dos Santos stepped down as president last month after 38 years, is also set for a boost from the oil recovery, rebounding to 1.5% growth this year from a 0.7% contraction last year.

The IMF predicted weak growth of 0.7% in South Africa in 2017, saying "heightened political uncertainty" in the ruling ANC party had hit confidence despite good agricultural production.

Among the low-income countries in the sub-Saharan region, the report forecast continued high growth in Ethiopia, at 8.5% in 2017 and 2018.

It also warned of food shortages and drought in The Gambia, South Sudan and Somalia.

Read more on:    international monetary fund  |  nigeria  |  gambia  |  south sudan  |  south africa  |  ethiopia  |  africa

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.