By Elizabeth Adegbesan
The World Bank has ascribed the slower pace of economic recovery in Sub Saharan Africa to equally sluggish expansion experienced in Nigeria, Angola and South Africa.
Specifically, while the bank identified the problems as lower oil production inAngola and Nigeria offsetting higher oil prices, in South Africa it says weak household consumption growth was compounded by a contraction in agriculture.
Early this week the Central Bank of Nigeria, CBN’s recent Purchasing Managers Index, PMI, report showed that growth in the manufacturing and non manufacturing sectors has slowed down.
However, according to the World Bank’s October 2018 issue of ‘Africa’s Pulse’, a bi-annual analysis of the state of African economies by the World Bank, the average growth rate in the region is estimated at 2.7 percent in 2018, which represents a slight increase from 2.3 percent in 2017.
The report stated: “Sub-Saharan African economies are still recovering from the slowdown in 2015-16, but growth is slower than expected, according to the October 2018 issue of Africa’s Pulse, the bi-annual analysis of the state of African economies by the World Bank. The average growth rate in the region is estimated at 2.7 percent in 2018, which represents a slight increase from 2.3 percent in 2017.
“Slow growth is partially a reflection of a less favourable external environment for the region. Global trade and industrial activity lost momentum, as metals and agricultural prices fell due to concerns about trade tariffs and weakening demand prospects.
“While oil prices are likely to be on an upward trend into 2019, metals prices may remain subdued amid muted demand, particularly in China. Financial market pressures intensified in some emerging markets and concern about their dollar-denominated debt has risen amid a stronger US dollar.”
The report further stated: “The slower pace of the recovery in Sub-Saharan Africa (0.4 percentage points lower than the April forecast) is explained by the sluggish expansion in the region’s three largest economies, Nigeria, Angola, and South Africa. “Lower oil production in Angola and Nigeria offset higher oil prices, and in South Africa, weak household consumption growth was compounded by a contraction in agriculture. Growth in the region – excluding Angola, Nigeria and South Africa – was steady”