Ghana is tipped to lead Africa as the fastest growing economy in 2018 with a growth rate of eight per cent as a result of increased oil and gas production, which boosts exports and domestic electricity production.
In its latest report dubbed: “Global Economic Prospects: Sub-Saharan Africa,” the World Bank has forecasted that growth in Sub-Saharan Africa will pick up at 3.2 percent in 2018, and Ghana will lead the economies in Africa with eight per cent followed by Ethiopia and Tanzania, which is expected to grow at 7.2%
Ghana’s economic growth, which had slowed from 4.0% in 2014 to 3.7% in 2015, recover to 5.8% in 2016 and 8.7% in 2017, following consolidation of macroeconomic stability and implementation of measures to resolve the crippling power crisis.
However the forecasted recovery in economic growth in 2018 will depends on fiscal consolidation measures remaining on track, quick resolution of the power crisis, two new oil wells coming on-stream, and improved cocoa harvest and gold production.
“Growth in non-resource intensive countries is anticipated to remain solid, supported by infrastructure investment, resilient services sectors, and the recovery of agricultural production,” the report stated.
On the Sub-Sahara outlook, the bank said growth in the area was forecast to pick up to 3.2 per cent in 2018. It also predicated a moderate rise in commodity prices.
Per capita output, which was projected to shrink by 0.1 per cent in 2017, is also expected to increase to a modest 0.7 per cent growth pace over 2018-19.
“At those rates,” World Bank said “growth will be insufficient to achieve poverty reduction goals in the region, particularly if constraints to more vigorous growth persist”.
Growth in South Africa, the second biggest economy in Africa, which is projected to rise to 0.6 per cent in 2017, is expected to accelerate to 1.1 per cent in 2018. Africa’s biggest economy, Nigeria, which is forecasted to go from recession to a 1.2 per cent growth rate in 2017, will gain speed to 2.4 per cent in 2018, helped by a rebound in oil production.
Growth is forecast to jump to 6.1 per cent in Ghana in 2017 and 7.8 per cent in 2018 as increased oil and gas production boosts exports and domestic electricity production. However the bank noted that militants’ attacks on oil pipelines could hold the key.
“If militants’ attacks on oil pipelines in the country decreases further the Nigeria economic will grow further”