The World Bank has projected that sub-Saharan Africa’s economy would slow down to 2.5 percent in 2023 owing to lingering uncertainty in the global economy which is dragging down growth prospects in the region, among others.
According to the latest World Bank Africa’s Pulse report released on Wednesday, rising instability, weak growth in the region’s largest economies, and lingering uncertainty in the global economy are dragging down growth prospects in the region.
Economic growth in sub-Saharan Africa was forecasted to decelerate to 2.5 percent in 2023, from 3.6 percent in 2022.
South Africa’s Gross Domestic Product (GDP) was expected to only grow by 0.5 percent in 2023 as energy and transportation bottlenecks continue to bite.
The report stablished that Nigeria and Angola were projected to grow at 2.9 percent and 1.3 percent respectively, due to lower international prices and currency pressures affecting oil and non-oil activity.
“Increased conflict and violence in the region weigh on economic activity, and this rising fragility may be exacerbated by climatic shocks.
“In Sudan, economic activity is expected to contract by 12 percent because of the internal conflict which is halting production, destroying human capital, and crippling state capacity,” according to the report.
In per capita terms, growth in sub-Saharan Africa has not increased since 2015.
The region was projected to contract at an annual average rate per capita of 0.1 percent over 2015-2025, thus potentially marking a lost decade of growth in the aftermath of the 2014-15 plunge in commodity prices.
World Bank Chief Economist for Africa, Andrew Dabalen, said: “the region’s poorest and most vulnerable people continue to bear the economic brunt of this slowdown, as weak growth translates into slow poverty reduction and poor job growth.
“With up to 12 million young Africans entering the labour market across the region each year, it has never been more urgent for policymakers to transform their economies and deliver growth to people through better jobs.”
Despite the gloomy outlook, there are a few bright spots.
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