The economic performance of sub-Saharan African countries will fall this year due to low commodity prices and tight financial conditions, according to a report by the World Bank. Titled “Africa’s Pulse: An Analysis of Issues Shaping Africa’s Economic Future,“ the report shows that the region’s economy is expected to grow by just 1.6 percent, down from 3 percent in 2015. This would be the lowest economic growth in sub-Saharan Africa in more than two decades.
According to the report, this is partly due to trends that are adversely affecting the region, such as droughts caused by climate change and political insecurity.
Tight financial conditions have paralyzed several economies in the region as interest rates have been raised by African Central Banks to curb inflation. This has been the case in countries such as Uganda, Kenya, and Ghana.
The situation is even more bleak for sub-Saharan African countries that rely on oil exports such as Nigeria, Sudan, South Sudan, and Niger.
South Africa, which relies on the European market for their raw products, saw a decline in their earnings earlier this year, due to the United Kingdom’s decision to leave the European Union.
Hope for sub-Saharan Africa
However, there appears to be some hope amidst this gloom. East African countries such as Rwanda, Ethiopia, and Tanzania are recording an average annual economic growth of 6 percent.
This positive performance is due to the strong economic and governance policies adhered to in these countries.
“Such countries have a stronger quality of monetary and economic policies, a better business regulatory environment, more diverse structure of exports and more effective public institutions,” explains the report.
It is against this context that the report predicts the moderate rise of sub-Saharan Africa’s economy moving forward. According to the report, the economy in the region will surge from 1.6 percent this year to 2.9 percent next year. It will then shoot to 3.6 percent by 2018.
The report argues global economic trends are likely to be more favorable by then, resulting in the stability of prices of goods and services, in addition to lower inflation. This will encourage people to consume more products and services and invest their earnings into profitable ventures.
Pacers star Tyrese Haliburton has said that his little brother was subjected to racial abuse,…
Reggie Bush has regained his place as the 2005 Heisman Trophy winner after over a…
Since 2012, actor Nick Cannon has openly shared his struggle with lupus to support others…
Former USC superstar Caleb Williams has been drafted by the Chicago Bears as the No.…
Stephen A. Smith is an ESPN analyst. People widely regard him as the face of…
Lil Durk is an American rapper and one of the most influential voices in the…
In 2022, Kevin Hart added a new title to his impressive resume: a tequila entrepreneur.…
AEW's latest pay-per-view, Dynasty 2024 on Sunday night saw Swerve Strickland defeat Samoa Joe to…
Renowned civil rights activist Opal Lee, known as the "Grandmother of Juneteenth," will be awarded…
Violet Horne lost her two sons to gun violence within the space of a month.…
An Ohio man said a K-9 bit him seven times after he was pulled over…
Three male foreign tourists who were spotted posing naked in a popular dune in Namibia…
Will.i.am is partnering with other prominent figures to revolutionize the digital media scene by forming…
Sabelle Beraki's childhood was inundated with the lack of representation when it came to a…
Benjamin Harvey is the founder of AI Squared, a third-party software company that helps organizations…