Indications have emerged that Nigeria and some other countries in the Sub-Saharan Africa would experience slow growth this year, going by the recent reports published by the World Bank.
The group, in its latest Global Economic Prospects (GEP) report released at the weekend, said Nigeria, Angola (in Sub-Saharan Africa) and some developing countries across the world would face tough transition in 2015 with higher borrowing and lower prices for oil and other commodities.
Specifically, the World Bank predicts that growth in the region would slow to 4.2 per cent, slower than previously expected.
The report stated: “In Sub-Saharan Africa, low oil prices have considerably reduced growth in commodity-exporting countries (Angola, Nigeria), and have also slowed activity in non-oil sectors.
“Although South Africa is expected to be one of the main beneficiaries of low oil prices, growth is being held back by energy shortages, weak investor confidence amid policy uncertainty, and by the anticipated gradual tightening of monetary and fiscal policy.
“Growth in the region is forecast to slow to 4.2 percent, slower than previously expected. This mainly reflects a reassessment of prospects in Nigeria and Angola following the sharp drop in oil prices, and in South Africa, because of ongoing difficulties in electricity supply.
“For 2016-17, growth is expected to be only marginally higher as these challenges partially offset stronger trading partner growth and the continued expansion in the region’s low-income countries,” it stated. Read more
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