Economic growth in Sub-Saharan Africa is estimated to have recovered to 2.4 percent in 2017, after slowing sharply to 1.3 percent in 2016.
The rise reflects a modest recovery in Angola, Nigeria and South Africa which are the region’s largest economies supported by an improvement in commodity prices, favorable global financing conditions and slowing inflation that helped to lift household demand.
The World Bank latest analysis titled Global Economic Prospects (GEP), reveals that growth was slightly weaker than expected, as the region is still experiencing negative per capita income growth, weak investment, and a decline in productivity growth.
Although oil producers in the region continue to deal with the effects of the earlier oil price collapse, growth rebounded moderately in metals-exporting countries, reflecting an uptick in mining output amid rising metals prices, while growth in non-resource-intensive countries largely agricultural exporters was broadly stable, supported by infrastructure investment and crop production.
“Fiscal deficits narrowed slightly in 2017, the result of large spending cuts in some oil exporters,” read the report.
However, government debt continued to rise across the region compared to 2016, as countries borrowed to finance public investment.