African eco­nomic growth slows

China Daily (Canada) - - BUSINESS -

Eco­nomic growth in Africa is set to drop to a 23 year low of 1.4 per­cent in 2016 due to the drop in oil prices, drought in south­ern Africa and the po­lit­i­cal cri­sis in eastern Africa, the In­ter­na­tion­alMone­tary Fund fore­cast on Tues­day. Abebe Se­lassie, IMF Di­rec­tor of the African Depart­ment, said the record dip in eco­nomic growth in Africa would be short-lived and it re­sulted from a ma­jor drop in com­mod­ity prices, in­clud­ing heavy met­als and oil, af­fect­ing key African coun­tries. “There are four rea­sons for this slow­down: the drought, low com­mod­ity prices, tighter fi­nanc­ing con­di­tions and the de­layed pol­icy re­sponse in the re­gion,” Se­lassie said.

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