Sub-Saharan Africa economic growth prospects next year will benefit from growth in Nigeria.
The International Monetary Fund (IMF) in its World Economic Outlook July 2018 Report has announced that Sub-Saharan Africa region’s economy will probably expand 3.8 per cent in 2019.
The upgraded from 3.7 per cent in April’s forecast reflects improved prospects for Nigeria’s economy as well as an increase in commodity prices, added IMF.
Gross domestic product in Africa’s most-populous nation will probably rise 2.3 per cent, lifting its estimate from 1.9 per cent in April.
Nigeria’s economy is recovering from the worst contraction in 25 years in 2016, which was caused by lower oil prices and output and shortages of foreign exchange to import raw materials.
The IMF held its positive prediction for South Africa’s economy, saying despite the weaker‑than-expected first quarter the economy is expected to recover over the remainder of 2018 and into 2019.
This will be driven by confidence improvements associated with the new leadership which are reflected in strengthening of private investment.