The medium-term prospects for Sub-Saharan Africa remain favourable, with GDP growth forecast to remain broadly stable at 4.7% in 2014, the same as the year before, before quickening to 5.1% in each of 2015 and 2016, the World Bank’s (WB) said in its June Global Economic Prospects report. The region’s economic outlook will be underpinned by strengthening external demand and investments in natural resources, infrastructure, and agricultural production.
Growth is expected to be particularly strong in East Africa, increasingly boosted by FDI flows into offshore natural gas resources in Tanzania, and the onset of oil production in Uganda and Kenya. Although growth will remain subdued in South Africa, it will pick up modestly in Angola and remain robust in Nigeria, the region’s largest economy, according to WB.
FDI flows into Sub-Saharan Africa are projected to rise moderately to USD 32.5bn in 2014, which will help support growth in many countries, the WB forecasts. Besides FDI, the continued focus on expanding public infrastructure to ease supply bottlenecks and improved agricultural production are projected to provide further impetus to growth.
| Sub-Saharan Africa macro-indicators | GDP | CA/balance/GDP | |||
| 2013e | 2014f | 2013e | 2014f | ||
| South Africa | 1,9% | 2,0% | -5,3% | -5,9% | |
| Nigeria | 7,0% | 6,7% | 5,4% | 5,2% | |
| Senegal | 3,7% | 4,1% | -9,3% | -8,3% | |
| Tanzania | 7,0% | 7,2% | -15,8% | -16,0% | |
| Angola | 4,1% | 5,2% | 8,6% | 8,8% | |
| Cote d Ivoire | 8,7% | 7,4% | -3,3% | -4,3% | |
| Kenya | 4,7% | 5,0% | -7,7% | -8,1% | |
| Source: World Bank | |||||
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