Growth spurt predicted for subSaharan Africa
Sub-Saharan Africa’s economy is expected to grow 6.1 per cent in 2014, an increase on the previously held estimate of 5.7 per cent. This is according to the World Economic Outlook report released by the International Monetary Fund (IMF). Growth in the region for this year is projected at 5.6 per cent, the Washington-based IMF report reveals. The global economy is expected to expand by four per cent in 2014, up from 3.3 per cent for 2013.
In part, the improved growth will be driven by the strengthening of activity in South Africa, as the global economic recovery strengthens. “Similarly, some low-income and fragile countries are expected to do better,” says the report.
Growth in South Africa, the continent’s largest economy, will likely accelerate to 3.3 per cent from 2.8 per cent this year, as mining production rebounds after a period hampered by work stoppages in the second half of last year.
Export demand is set to improve as Europe emerges from a recession and growth in China fuels demand for commodities such as copper, iron ore and oil from sub-Saharan Africa.