Halcyon growth days can return if continent acts
Sub-Saharan Africa has lost its expansion momentum with a projected growth recovery in 2017 of 2.6%, but policies can tap into huge potential
Economic growth in sub-Saharan Africa has slowed markedly. After close to two decades of rapid expansion, 2016 saw the lowest level of growth in more than 20 years, with regional growth dipping to 1.4%. The loss in momentum was broad-based, with activity slowing in almost two-thirds of the countries (accounting for more than four-fifths of regional GDP). The main sources of encouragement are the sizable number of countries in East and West Africa in which growth remains robust, albeit slower than in recent years. And looking ahead, the outlook looks set to remain subdued. The modest recovery projected in 2017 — to 2.6% — will barely put sub-Saharan Africa back on a path of rising per capita gains. Furthermore, the uptick will be largely driven by one-off factors in the three largest countries — a recovery in oil production in Nigeria, higher public spending in Angola and a reduced drag from the drought in this country. The outlook is shrouded in substantial uncertainties: a faster t...
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