Economic growth in sub-Saharan Africa is expected to fall to 1.6 percent in 2016, but despite reaching the lowest level in two decades is expected to make a modest recovery in 2017. Real GDP is forecast to grow 2.9 percent in 2017, then rise to 3.6 percent in 2018.
That’s according to the biannual Africa’s Pulse report, released by the World Bank on Thursday.
Much of the continent’s aggregate economic performance is tied to Nigeria and South Africa, the two largest African economies accounting for half of the region’s economic output. South Africa saw some improvement in Q2 because of its mining and manufacturing sectors, while low oil revenues, along with slow manufacturing, have hurt Nigeria.
The impact on Nigeria and other oil-producing African nations has heightened the need for nations to diversify their economies. The Africa Pulse analysis also underscores the need for more effective institutions and policy frameworks, and a better business regulatory environment, said Albert Zeufack, Chief Economist for Africa with the World Bank.
Ethiopia, Rwanda, and Tanzania have kept growth rates above 6 percent, while other countries including Côte d’Ivoire and Senegal have become top performers.
Agricultural productivity remains a top priority in the fight against poverty, with strong potential as Africa’s regional markets develop to an expected $1 trillion by 2030, the report said. The World Bank economists encourage more public spending in the sector to see real benefits.
Image: World Bank Africa