Monday, October 5, 2015

Africa GDP slows to 3.7% in 2015 – World Bank

World Bank has said that growth in African economy will slow in 2015 to 3.7 percent.

This development World Bank said, represents a decline from 4.6 percent recorded in 2014, reaching the lowest growth rate since 2009.

This revelation was made on Monday at a multi-national teleconferencing organized by the World Bank as part of its periodic press conference tagged: Africa’s Pulse, where it addresses issues bothering on African economy.

The Africa’s Pulse is a twice-yearly analysis of economic trends and the latest data on the continent.

The 2015 forecast remains below the robust 6.5percent growth in GDP which the region sustained in 2003-2008, and drags below the 4.5 percent growth following the global financial crisis in 2009-2014.

Meanwhile, the overall, growth in the region is projected to pick up to 4.4 per cent in 2016, and further strengthen to 4.8 percent in 2017.

It however, attributed the recent weakness in economic growth to the sharp drops in the price of oil and other commodities.

The Africa’s Pulse traced the economic slide to other external factors such as China’s economic and tightening of global financial conditions, which it said weighs on Africa’s economic performance.

Compounding these factors, the Pulse disclosed that bottlenecks in supplying electricity in many African countries hampered economic growth in 2015.

Speaking on the development, World Bank, Vice President for Africa, Makhtar Diop, said “the end of the commodity super-cycle poses an opportunity for African countries to reinvigorate their reform efforts and thereby transform their economies and diversify sources of growth.

‘‘Implementing the right policies to boost agricultural productivity, and reduce electricity costs while expanding access, will improve competitiveness and support the growth of light manufacturing,” Diop added.

The Africa’s Pulse further revealed, that despite this economic crunch, several African countries are continuing to post robust growth.

It listed Cote d’lvoire, Ethiopia, Mozambique, Rwanda and Tanzania as some of the countries expected to sustain growth at around 7 percent or more per year in 2015-17, to be spurred by investments in energy and transport, consumer spending and investment in the natural resources sector.


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