Growth in sub-Saharan Africa downgraded to 2.3% in 2018, expected to rebound to 2.8% in 2019

Moderate to high economic growth is essential to bolster economies and to spur jobs for the region’s teeming unemployed. But growth in sub-Saharan Africa was downgraded in 2018 to 2.3 per cent from 2.5 per cent in 2017.

The April 2019 issue of Africa’s Pulse, the World Bank’s bi-annual analysis of the state of African economies released today, April 8, 2019 says economic growth remains below population growth for the fourth consecutive year, and although regional growth is expected to rebound to 2.8 per cent in 2019, it will have remained below three per cent since 2015.

According to the publication, the slower-than-expected overall growth reflects ongoing global uncertainty, but increasingly comes from domestic macroeconomic instability including poorly managed debt, inflation, and deficits; political and regulatory uncertainty; and fragility that are having visible negative impacts on some African economies.

“It also belies stronger performance in several smaller economies that continue to grow steadily,” it added.

Commenting on digital innovation in Africa, Albert Zeufack, the World Bank Chief Economist for Africa, said “The digital transformation can increase growth by nearly two percentage points per year and reduce poverty by nearly one percentage point per year in Sub-Saharan Africa alone. This is a game-changer for Africa.”

By Emmanuel K. Dogbevi