World Bank Group fore­casts 3.2% growth for Sub Sa­hara Africa - SSA

Zambian Business Times - - POLITICS AND GOVERNMENTS -

THE WORLD BANK has fore­casted a more bullish growth for Sub Sa­hara Africa – SSA. The es­ti­mated growth pro­jected for SSA is 3. 2% for 2018 0.8% up from 2.4% in 2017. This growth mo­men­tum will in­crease to 3.5% in 2019.

The globe is cur­rently in up­turn mode of the busi­ness cy­cle ev­i­denced by a rise in com­mod­ity prices for crude, cop­per, co­coa, cobalt and cof­fee which is ex­pected to per­sist for years to come. How­ever, the world bank has ad­vised cau­tious op­ti­mism in light of down­side risks.

In con­trast, growth in po­ten­tial out­put (full-em­ploy­ment out­put) is flag­ging, lan­guish­ing be­low its longer term and pre-cri­sis av­er­age both glob­ally and among Emerg­ing Mar­ket and De­vel­op­ing Economies - EMDEs.

Forces de­press­ing po­ten­tial out­put growth will con­tinue un­less coun­tered by struc­tural poli­cies. In oil-ex­port­ing economies, the 2014-16 oil price plum­met has al­ready prompted some re­forms.

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