World Bank cuts growth forecast for sub-Saharan Africa
Economic growth forecast for sub-Saharan Africa for 2019 to 2021 has been cut by the World Bank by 0.2 percentage points.
Earlier projection by the bank was promising but the latest cut according to the banks is due to slowdown in fixed investment and policy uncertainty in the global economy.
The World bank stressed that the economy of sub-Saharan Africa will hit 2.6% this year. That is a cut from a 2.8% projection in April.
Growth would however rise to 3.1% in 2020 and 3.2% in 2021, the bank’s latest October Africa’s Pulse report.
“Despite some improvements, the external environment is expected to remain difficult and uncertain for the region,” the bank said.
The bank said Nigeria, South Africa and Angola, which make up about 60% of sub-Saharan Africa’s annual economic output, are all facing various impediments.
“The medium-term growth outlook continues to be constrained by a weak macroeconomic policy environment and slow policy implementation,” the bank said.
In April this year the bank cut its growth forecast for Sub-Saharan Africa this year to 2.8 percent from an initial 3.3 percent.
The bank’s 2019 forecast then meant economic growth will lag for the fourth year in a row stuck below 3 percent, which it slipped to in 2015.
Source: Africafeeds.com
