Sub-Saharan Africa economic growth slips further from target

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The latest report from World Bank shows economic growth in sub-Saharan Africa is likely to slip to 1.6% this year, as one of the world’s fastest-growing frontiers continues to lose steam because of overdependence on oil and commodity exports. The latest report from World Bank shows economic growth in sub-Saharan Africa is likely to slip to 1.6% this year, as one of the world’s fastest-growing frontiers continues to lose steam because of overdependence on oil and commodity exports.

The latest report from World Bank shows economic growth in sub-Saharan Africa is likely to slip to 1.6% this year, the lowest level in more than two decades — as one of the world’s fastest-growing frontiers continues to lose steam because of overdependence on oil and commodity exports.

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The report released Thursday says the weak growth mainly reflects the deteriorating performance of the continent's largest economies, Nigeria and South Africa. Together, they account for half the region's economic output.

Africa has been one of the world's fastest growing region's over the past decade, but a commodities slump has hit its oil and mineral exporters hard, bringing growth down to 3 percent in 2015.
 
However, other countries, including Ethiopia, Rwanda, and Tanzania, have continued to record GDP growth above 6 percent, according to "Africa's Pulse", the Bank's twice-yearly analysis of economic trends.
 
The report, which was unveiled in Ivory Coast's commercial capital Abidjan, also singled out Ivory Coast and Senegal as top performers.
 
"Our analysis shows that the more resilient growth performers tend to have stronger macroeconomic policy frameworks, better business regulatory environment, more diverse structure of exports, and more effective institutions," said Albert Zeufack, World Bank chief economist for Africa.
 
Established and improved performers made up around a quarter of sub-Saharan Africa's countries, are home to 42 percent of its people, but account for just 21 percent of economic output.
 
Meanwhile, 40 percent of African economies are struggling. They contain 36 percent of the continent's population but contribute 62 percent of economic activity. Nigeria and South Africa alone account for half of output.
 
Despite a recent timid recovery in commodities, price are expected to remain below their 2011-14 peak levels, the report said.

The World Bank noted that 2016 has been the slowest recent year for sub-Saharan African sovereign borrowing, with just Ghana and South Africa issuing bonds to date.

Read more on:

World Bank  |  Tanzania Economy | Business and GDP Growth Outlook  |  Ethiopia Economy | Business and GDP Growth Outlook  |  Rwanda Economy | Business and GDP Growth Outlook  |  Ivory Coast Economy | Business and GDP Growth Outl  |  Senegal Economy | Business and GDP Growth Outlook  |  South Africa Economy | Business and GDP Growth Out  |  Nigeria Economy | Business and GDP Growth Outlook  |  Albert Zeufack  |  Ghana Economy | Business and GDP Growth Outlook

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