World Bank Lowers Sub-Saharan Africa’s Growth Projection for 2019

• World Bank Lowers Sub-Saharan Africa’s Growth Projection for 2019

The World Bank has lowered Sub-Saharan Africa growth projection for 2019, citing global uncertainty and slow local reforms.

The bank stated this in its 20th edition of Africa’s Pulse report released on Wednesday.

Growth in the region is projected to slow by 0.2 percent points from 2.8 percent predicted in April to 2.6 percent in 2019.

While growth is expected to rise by 3.1 percent in 2020 and 3.2 percent in 2021.

“Despite some improvements, the external environment is expected to remain difficult and uncertain for the region,” the bank stated in the report.

This, the bank attributed to weak recovery in Nigeria, South Africa and Angola, the region’s three largest economies.

Growth in Nigeria is expected to slow to 2.0 percent in 2019, down from the 2.1 percent predicted in April and should expand by 2.1 percent in 2020 and 2021.

“The medium-term growth outlook continues to be constrained by a weak macroeconomic policy environment and slow policy implementation,” the bank said, citing multiple exchange rates, foreign exchange restrictions, high inflation, and low non-oil revenues among other obstacles.

In South Africa, economic growth was lowered from 1.3 percent predicted in April to 0.8 percent for the year 2019. Growth is expected to rise by just 1.0 percent in 2020, down from 1.7 percent predicted in April.

It said South Africa’s growth was lowered because of the sharp slowdown in GDP, weak investment sentiment and policy uncertainty, adding that it is still unclear whether a solution could be found for Eskom, the state power firm.

Similarly, Angola’s economy will slow down from 1.0 percent forecast in April to 0.7 percent in 2019.

The rest of the region, excluding the three largest economies, is expected to growth at a 4.0 percent rate in 2019, down from 4.4 percent predicted in April and 4.7 percent and 4.8 percent in 2020 and 2021, respectively.