A new report World Bank report, dubbed Africa Pulse, has revealed that economic growth in Sub-Saharan Africa is recovering at a modest pace and is projected to pick up to 2.4 percent in 2017 from 1.3 percent in 2016.
According to the new Africa’s Pulse report released this Wednesday, the present forecast is below the April forecast of 2.6 percent.
Going by APA, the rebound is led by the region’s largest economies. In the second quarter of this year, Nigeria pulled out of a five-quarter recession and South Africa emerged from two consecutive quarters of negative growth.
Improving global conditions, including rising energy and metals prices and increased capital inflows, have helped support the recovery in regional growth.
However, the report warns that the pace of the recovery remains sluggish and will be insufficient to lift per capita income in 2017.
Growth continues to be multispeed across the region. In non-resource intensive countries such as Ethiopia and Senegal, growth remains broadly stable supported by infrastructure investments and increased crop production.
The report pointed out that in metal exporting countries, an increase in output and investment in the mining sector amid rising metals prices has enabled a rebound in activity.
Headline inflation slowed across the region in 2017 amid stable exchange rates and slowing food price inflation due to higher food production.
Fiscal deficits have narrowed, but continue to be high, as fiscal adjustment measures remain partial, said the World Bank.
Africa Pulse is a bi-annual analysis of the state of African economies conducted by the World Bank.