Growth spurt pre­dicted for sub­Sa­ha­ran Africa

RISKAFRICA Magazine - - • AVCA -

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.

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