Economic growth in sub-Saharan Africa is estimated to have slowed down to 2.3 percent in 2018 from 2.5 percent in 2017, the World Bank said in a report released in Nairobi on Monday.
According to Africa’s Pulse, the slower-than-expected overall growth reflects ongoing global uncertainty, and domestic macroeconomic instability including poorly managed debt, inflation, and trade deficits.
“Economic growth remains below population growth for the fourth consecutive year, and although regional growth is expected to rebound to 2.8 percent in 2019, it will have remained below 3 percent since 2015,” according to the World Bank’s report.
The report also looks at how fragility is holding back sub-Saharan Africa, and how the digital economy can help the continent move forward.
According to the survey, the slowdown of sub-Saharan Africa growth in 2018 was more pronounced in the first half of the year and reflected weaker exports from the region’s large oil exporters such as Nigeria and Angola, due to falling oil production amid higher but volatile international crude oil prices.
The findings also indicate that fragility in a handful of countries is costing sub-Saharan Africa over half a percentage point of growth per year which adds up to approximately 2.6 percentage points over five years. The study shows that growth for the region is projected to pick up to 3.3 percent in 2020.
“This gradual recovery is supported, on the demand side, by exports and private consumption and, on the supply side, by a rebound in agricultural production and an increase in mining production and services in some countries,” says the report. Enditem