Growth in sub-Saharan Africa in 2016 is set to slow sharply to its lowest level in more than 20 years, underlining the need for strong policy action in response. The 2016 forecast of 1.4% is lower than last year’s 3.4% and much less than the 5% average from 2010-14. This year will also be the first time that the region experiences negative per capita growth in more than two decades — a development that runs counter to Africa’s progress in raising living standards over the past 15-20 years. This dramatic slowdown reflects two broad factors. First, the external environment facing many of the region’s countries has deteriorated, notably with commodity prices at multiyear lows and financing conditions markedly tighter. In addition, the policy response in many of the countries most affected by these shocks has been much delayed and incomplete. This is raising uncertainty, deterring private investment and stifling new sources of growth. However, these developments do not imply that we sho...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.