The economic growth in Sub-Saharan African region is expected to pick up to 2.9 percent in 2020, the World Bank has disclosed in its January 2020 Global Economic Prospects released on Thursday.
According to the report, the growth is hinged on the assumption that investor confidence improves in some large economies, energy bottlenecks ease, a pickup in oil production contributes to recovery in oil exporters and robust growth continues among agricultural commodity exporters.
“The forecast is weaker than previously expected reflecting softer demand from key trading partners, lower commodity prices, and adverse domestic developments in several countries,” notes the report.
In South Africa, the report points out that growth is expected to pick up to 0.9 percent, assuming the new administration’s reform agenda gathers pace, policy uncertainty wanes, and investment gradually recovers.
Growth in Nigeria expected to edge up to 2.1 percent as the macroeconomic framework is not conducive to confidence.
Growth in Angola is anticipated to accelerate to 1.5 percent, assuming that ongoing reforms provide greater macroeconomic stability, improve the business environment, and bolster private investment. In the West African Economic and Monetary Union, growth is expected to hold steady at 6.4 percent.
In Kenya, growth is seen edging up to 6 percent, notes the report.
Globally, the economic growth is forecast to edge up to 2.5 percent in 2020 as investment and trade gradually recover from last year’s significant weakness but downward risks persist.
JK/abj/APA