2018 is looking good for Africa’s economy

3/28/2018 2:25:05 PM

2018 may become a good year for sub Saharan Africa’s economies. The World Bank forecasts growth of 3.2% for the year, up from 2.4% in 2017. The outlook for growth for 2019 is even better: 3.5%.

The forecasts are not as solid one would like them to be. Some events may spoil the good news somewhat during the year. In a report by Quartz, the World Bank warns countries about the possibility of a (further) drop in commodity prices, a rise in global interest rates, as well as “the ongoing debt mismanagement by some countries.”

The Foresight Africa 2018 report expects half of sub Saharan Africa’s economies to grow at a rate similar to that before the commodity price crash of 2014. Nigeria and Angola, being the continent’s largest oil producers, should see accelerated expansion as oil prices recover this year. The World Bank expects South Africa to grow by 1.1% compared with 0.8% last year. Nigeria should grow by 2.5% from 1% in 2017; Angola is expected to expand by 1.6%.

Further reading: qz.com

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