Modest growth is expected in Sub-Saharan economy: report

NewsBharati    03-Nov-2017
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Washington, November 3: Despite last year’s slow growth in the economy of Sub-Saharan Africa, International Monetary Fund predicts a modest growth this year. From 20-years low, a rebound is expected from last year’s 1.4% to 2.6%. Though amid the expectation of growth, the organization warns public debt is rising and soon could become unsustainable in some African countries.

But among 45 countries in sub-Saharan Africa, only 12 countries are going to enjoy the benefit. In case of rest of the countries, people in those countries will not be enjoying an increase in per capita income. "This is about 40 percent of the population. So a lot of work to be done to put in place the policies, policy environments, to get growth back up to the 5 or 6 percent we need to make a significant dent on poverty reduction going forward," IMF's Africa Department Director Abebe Aemro Selassie said.

But some economists have disagreed with IMF forecast. They want to focus on the recent increases in commodity prices, and in particular on the fact that oil has moved up well over $60 a barrel in recent weeks. Hence that is important for oil-based economies like Nigeria and Angola.