The World Bank in the “Global Economic Prospects: Sub-Saharan Africa” report has forecasted that growth in Sub-Saharan Africa will not only pick up at 3.2% in 2018, but Ghana will lead the economies in Africa with an 8.3% economic growth.
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In the report, the forecasted recovery in economic growth in 2018 will be dependent on fiscal consolidation measures remaining on track, quick resolution of the power crisis, the two new oil wells coming on-stream, and improved cocoa harvest and gold production.
The report states that Ghana’s economic growth, slowed from 4.0% in 2014 to 3.7% in 2015. Recovery was seen in 2016 where it grew to 5.8%. In 2017, growth was recorded at 8.7%, following consolidation of macroeconomic stability and implementation of measures to resolve the crippling power crisis. Growth is forecasted to rise in 2018 as increased oil and gas production boosts exports and domestic electricity production.
Quoting the report “Outside the three largest economies, among oil exporters, growth is forecast to strengthen in Ghana, as increased oil and gas production lifts exports. Growth in CEMAC is expected to remain subdued but improve gradually, as countries continue to adjust to low oil prices. The ongoing recovery in metals exporters is projected to continue. Steadily rising metals prices are expected to encourage further investment in the mining sector. In some metals exporters, a combination of slowing inflation and monetary policy easing is expected to support a pickup in household demand. In others, improved weather conditions will also enhance power generation, supporting greater private sector activity.”
On the Sub-Sahara outlook, the bank said growth in the area has been forecasted to pick up to 3.2% in 2018 in addition to a moderate rise in commodity prices. Per capita output, which was projected to shrink by 0.1% in 2017, is also expected to increase to a modest 0.7% growth pace over 2018-19.
The forecast places Ethiopia and Tanzania behind Ghana as economies expected to see growth at 7.2%.
Download the full report here.