Prospects for African economies to end-2018

Subject

Prospects for African Economies.

Significance

Sub-Saharan African economies are expected to expand by 3.4% this year, up from 2.8% in 2017, reflecting continued recovery in the two largest economies (Nigeria and South Africa). However, medium-term growth is forecast to remain below 4%, as the consequences of delayed and insufficient policy responses to the commodities crisis take time to resolve. Some rapidly growing non-resource exporters (Ivory Coast, Senegal) could also slow under the weight of rising debt distress, particularly if private sources of growth fail to emerge. Political transitions in other countries (Angola, Zimbabwe) could be auspicious for the region's investment attractiveness -- if positive policy shifts develop further.