Higher Mineral Output Fueling Africa’s  Growth

Mining

February 21, 2018//-Rising oil and mining output as new projects come online combined with firmer commodity prices will boost growth in the African region’s commodity exporters this year.

The March 2018 estimate compiled by FocusEconomics FocusEconomics, a leading provider of economic analysis and forecasts for 127 countries  in Africa, Asia, Europe and the Americas has revealed.

Meanwhile, robust public spending and infrastructure projects are seen supporting activity elsewhere. All-in-all, the Sub-Saharan African economy is seen expanding 3.3% in 2018, unchanged from last month’s forecast and above 2017’s expected 2.5% increase, it added.

“Several risks to the outlook persist, however, including turbulent politics, weaker than-expected commodity prices, high debt loads and security concerns”.

In 2019, GDP is projected to increase 3.7%. This month, the majority of Sub-Saharan Africa (SSA) economies saw no changes to their forecasts.

The economists at FocusEconomics observed: ” Côte d’Ivoire and Nigeria saw their prospects upgraded, while forecasts for Angola, DR Congo, Mozambique and Tanzania were downgraded”.

Angola’s forecast was cut a notable 0.5 percentage points as fiscal consolidation and structural imbalances dent the country’s outlook. Ethiopia’s economy is expected to lead the region this year, expanding a robust 7.7%.

Ghana and Côte d’Ivoire are projected to be the next fastest-growing economies, expanding 7.1% and 6.8%, respectively. On the other hand, growth in the region’s major players is expected to be more moderate, and they will be the region’s laggards.

South Africa is projected to expand 1.5%, followed by Angola with 1.6% growth and Nigeria with a 2.6% expansion.

African Eye Report

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