World Bank Reduces Growth Projection for Sub-Saharan Africa

• World Bank Reduces Growth Projection for Sub-Saharan Africa

The World Bank has reduced its economic projection for Nigeria, the largest economy in Africa and other sub-Saharan nations.

The region is expected to grow at 2.7 percent rate this year, down from the 3.1 percent previously projected.

The bank said the reduction was as a result of slower than the expected growth recorded in recent quarters.

Lower oil production in Nigeria and Angola despite rising global oil prices, weak household consumption compounded by the contraction in agriculture in South Africa, are some of the reasons given for the reduction.

Albert Zeufack, the World Bank’s Chief Economist for Africa, urged governments in the region to boost economic productivity.

Zeufack said, “High public debt in some countries in the region, combined with weakening currencies and rising interest rates, can endanger their ability to service those debts.

“Policymakers in the region must equip themselves to manage new risks arising from changes in the composition of capital flows and debt.”