World Bank lowers growth outlook for sub-Saharan Africa
Downgrades after President Jacob Zuma’s shock reshuffle ‘a significant setback to business and investor confidence in SA’, says World Bank
Washington — The World Bank cut its growth projection for sub-Saharan Africa this year because of weak expansion in the region’s three biggest economies, with low investor confidence in SA an issue. The region’s gross domestic product (GDP) will expand 2.6% in 2017, the bank said in its Africa Pulse report on Wednesday. That compares with a January projection of 2.9% and matches the International Monetary Fund’s prediction released this week. "The region’s three largest economies — Angola, Nigeria, and SA — are projected to post only a modest growth following a sharp slowdown in 2016," it said. "Investment growth will recover only gradually amid tight foreign-exchange liquidity conditions in major oil exporters and low investor confidence in SA."
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