BUSINESS TECHNOLOGY MEDIA FOR AFRICA

SA drags down African economic growth

SA drags down African economic growth
Staff Writer
By Staff Writer, ITWeb
14 May 2012

Sub-Saharan Africa's economies will expand at a slower rate in 2012 than earlier projected, undermined by global financial distress and a sluggish recovery in South Africa, the International Monetary Fund (IMF) said Monday.

Africa's growth has remained above 5% in the last eight years, underpinned by strong prices for its natural resources, better governance and growing disposable incomes.

In its latest Regional Economic Outlook, the IMF forecast 5.4% growth this year from 5.1% in 2011. Its previous projections were 5.9 and 5.5% respectively.

"The growth outlook for 2012 is somewhat less favourable than outlined in the October 2011 Regional Economic Outlook, with the growth projection for 2012 now cut by almost one-half a percentage point, driven in large part by the weaker economic outlook for South Africa," the IMF said.

Growth in Africa's economic powerhouse was likely to be a relatively modest 2.7% this year and 3.4% in the next, held back by its reliance on trade with Europe and close links with western financial markets, the Fund said.

However, an upturn in drought-hit east Africa, fresh output in new natural resource producers such as Niger and Sierra Leone and recovery in post-conflict nations such as Ivory Coast should help boost the continent's economic activity in 2012.

Sierra Leone and Niger could post outstanding growth of 35.9 and 14% respectively. Big oil-producers Nigeria and Angola will also be major drivers of the expansion.

Economies reliant on non-renewable resources are experiencing faster growth but are also suffering the worst volatility in exports, revenues and GDP expansion, the IMF said.

Share

Read more
ITWeb proudly displays the “FAIR” stamp of the Press Council of South Africa, indicating our commitment to adhere to the Code of Ethics for Print and online media which prescribes that our reportage is truthful, accurate and fair. Should you wish to lodge a complaint about our news coverage, please lodge a complaint on the Press Council’s website, www.presscouncil.org.za or email the complaint to enquiries@ombudsman.org.za. Contact the Press Council on 011 484 3612.
Copyright @ 1996 - 2025 ITWeb Limited. All rights reserved.