Growth in Sub-Saharan Africa slower than expected: World Bank
(EBC; October 03, 2018) - Sub-Saharan African economies growth is slower than expected, according to the October 2018 issue of Africa’s pulse, the bi-annual analysis of the state of African economies by the World Bank.
The average growth rate in the region is estimated at 2.7 percent in 2018, which represents a slight increase from 2.3 percent in 2017.
“The region’s economic recovery is in progress but at a slower pace than expected,” said Albert Zeufack, World Bank chief economist for Africa.
“To accelerate and sustain an inclusive growth momentum, policy makers must continue to focus on investments that foster human capital, reduce resource misallocation and boost productivity. Policymakers in the region must equip themselves to manage new risks arising from changes in the composition of capital flows and debt,” he added.
Slow growth is partially a reflection of a less favorable external environment for the region. Global trade and industrial activity lost momentum, as metals and agricultural prices fell due to concerns about trade tariffs and weakening demand prospects.
The slower pace of the recovery in Sub-Saharan Africa (0.4 percentage points lower than the April forecast) is explained by the sluggish expansion in the region’s three largest economies, Nigeria, Angola, and South Africa.
This issue of Africa’s Pulse highlights sub-Saharan Africa’s lower labor productivity and potentials for improvement “reforms should include policies which encourage investments in non-resource sectors, generate jobs and improve the efficiency of firms and workers,” said Cesar Calderon, Lead economist and Lead author of the report.