NAIROBI (Xinhua) --
The World Bank has cut its forecast for growth of
sub-Saharan Africa in 2018 to 2.7 percent, down from an earlier
one of 3.1 percent, partly due to less favorable external
environment for the region.
The lender said in
its October 2018 issue of Africa’s Pulse, the bi-annual analysis
of the state of African economies, that its 2018 projection
represents a slight increase from 2.3 percent in 2017.
“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,” said the World Bank.
World Bank chief economist for Africa, said the region’s
economic recovery is in progress but at a slower pace than
policymakers must continue to focus on investments that foster
human capital, reduce resource misallocation and boost
productivity to accelerate and sustain an inclusive growth
“Policymakers in the
region must equip themselves to manage new risks arising from
changes in the composition of capital flows and debt,” he said.
According to the
report, 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 U.S. dollar,” says the Pulse.
The World Bank said
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.
The lender said
growth in the region—excluding Angola, Nigeria and South
Africa—was steady, noting that several oil exporters in central
Africa were helped by higher oil prices and an increase in oil
According to the
World Bank, economic activity remained solid in fast-growing
non-resource-rich countries, such as Côte d’Ivoire, Kenya, and
Rwanda, supported by agricultural production and services on the
production side, and household consumption and public investment
on the demand side.
The lender warned
that public debt remained high and continues to rise in some
countries, noting that vulnerability to weaker currencies and
rising interest rates associated with the changing composition
of debt may put the region’s public debt sustainability further