IMF says Nigeria and SA weigh on Africa's growth
There are spending risks from the public sector wage discussions under way and possible demands for further bailouts from state-owned entities, says the IMF
Powerhouses Nigeria and SA are dragging down growth in sub-Saharan Africa. The International Monetary Fund (IMF) says political and policy uncertainty have weighed down on investment in SA and stymied its growth. “Nigeria and SA, the two largest economies in sub-Saharan Africa and its main economic engines, have been stuck in low gear and are weighing heavily on the region’s overall growth,” says an IMF report on the outlook for the region. However, both Nigeria’s and SA’s economies could experience a confidence boost if policy reforms advanced faster than expected, said the IMF. Growth in the region is estimated to pick up from 2.8% in 2017 to 3.5% in 2018. SA is lagging, with growth expected to increase from 1.3% in 2017 to 1.5% in 2018. Investec chief economist Annabel Bishop said if President Cyril Ramaphosa managed to repair the main institutions quicker than expected, this would boost investor sentiment and lift economic growth. However, while political developments were expec...
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