Tags: natural | resource | Africa | economy

Sub-Saharan Africa Economy to Grow on Natural Resource Boom

Monday, 07 Apr 2014 10:20 AM

Economic growth in sub-Saharan Africa is forecast to increase by 5.2 percent this year, driven by increasing investment to exploit the region’s natural resources and develop infrastructure, the World Bank said.

Gross domestic product rose 4.7 percent in 2013, the Washington-based bank said today in an e-mailed statement, citing Africa Pulse, a twice-yearly study published by the lender. The outlook compares with a forecast in the October edition of Africa Pulse of 5.3 percent this year from 4.9 percent in 2013.

The region attracted foreign direct investment worth a “near-record” $43 billion last year, up 16 percent from a year earlier, fueled by oil and gas discoveries in nations including Angola, Mozambique and Tanzania, the bank said.

Economic growth in 2013 was buoyed by Democratic Republic of Congo, Africa’s biggest copper producer, and iron-ore producer Sierra Leone, as well as the “non-resource-rich” nations of Ethiopia and Rwanda, according to the statement.

Challenges that may undermine expansion include weaker demand for African commodity exports and local food-price increases because of currency depreciation and poor crop-growing weather in some nations. Turmoil in South Sudan and Central African Republic also pose a “major threat” to those economies and their neighbors, according to the statement.

Poor infrastructure will “continue to limit the region’s growth potential,” said Makhtar Diop, the World Bank’s Vice President for Africa. “Significantly more infrastructure spending is needed in most countries in the region if they are to achieve a lasting transformation of their economies.”

Remittances to the region grew 6.2 percent to $32 billion last year, surpassing a record of $30 billion in 2011. Inflation slowed to an annual 6.3 percent from 10.7 percent in 2012 as global food and fuel prices declined and African governments promoted “prudent” monetary policies, it said.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Markets
Economic growth in sub-Saharan Africa is forecast to increase by 5.2 percent this year, driven by increasing investment to exploit the region's natural resources and develop infrastructure, the World Bank said.
natural,resource,Africa,economy
292
2014-20-07
Monday, 07 Apr 2014 10:20 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved