World bank forecasts 2 7 growth for sub saharan africa in 2018
According to the World Bank's Global Economic Prospects report released in June 2018, Sub-Saharan Africa is expected to experience a growth rate of 2.7% in 2018. This forecast is slightly higher than the 2.3% growth rate predicted for 2017.
The World Bank attributed the expected growth to several factors, including:
- Improved agricultural production: Sub-Saharan Africa is a major producer of agricultural products, and an improvement in agricultural production is expected to contribute to the region's growth.
- Increased investment: The region is expected to see an increase in foreign direct investment, which will help to boost economic growth.
- Recovery in commodity prices: The prices of commodities such as oil, gold, and copper are expected to recover, which will benefit countries that are major producers of these commodities.
- Improved business environment: The World Bank noted that several countries in the region have implemented reforms to improve the business environment, which will help to attract investment and stimulate economic growth.
However, the World Bank also highlighted several challenges that could impact the region's growth, including:
- Vulnerability to external shocks: Sub-Saharan Africa is vulnerable to external shocks such as changes in commodity prices, interest rates, and global economic conditions.
- Infrastructure challenges: The region's infrastructure, including roads, ports, and energy systems, is often inadequate, which can hinder economic growth.
- Conflict and political instability: Several countries in the region are affected by conflict and political instability, which can disrupt economic activity and undermine growth.
Overall, the World Bank's forecast of 2.7% growth for Sub-Saharan Africa in 2018 is a cautious one, reflecting the region's vulnerability to external shocks and the need for continued reforms to improve the business environment and infrastructure.