A man is silhouetted against the logo of the World Bank at the main venue for the International Monetary Fund and World Bank annual meeting in Tokyo in October 2012. Picture: REUTERS
A man is silhouetted against the logo of the World Bank at the main venue for the International Monetary Fund and World Bank annual meeting in Tokyo in October 2012. Picture: REUTERS

Johannesburg, Nairobi -The World Bank has cut its forecast for growth in Sub-Saharan Africa as the external environment becomes less favourable amid mounting global trade risks and weakening demand for the area’s products.

GDP in the region would probably rise 2.7% in 2018, the Washington-based lender said in its Africa Pulse report on Wednesday.

That is down from the World Bank’s June forecast of 3.1% contained in the Global Economic Prospects publication.

"The road ahead is bumpy," it said. "The tightness of oil supply suggests that oil prices are likely to remain elevated through the rest of the year and into 2019. Metals prices have been lower than previously forecast and may remain subdued in 2019 and 2020 amid muted demand, particularly in China."

Sluggish expansion in SA, Angola and Nigeria, the three biggest economies, was weighing on economic activity in the area, it said. The World Bank cut its estimate for SA’s GDP expansion to 1% this year, from 1.4% before, and sees growth in 2019 remaining subdued as high unemployment in the country constrains domestic demand.

The bank cut its forecast for Nigerian growth this year by 0.2 percentage points to 1.9%.

Bloomberg

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