- Ethiopia has overtaken Ghana as Africa’s fastest growing economy, IMF said on Tuesday.
- Investors including General Electric Co. and hundreds of Chinese companies have in the recent past set bases in the horn of Africa.
- In 2017,
East Africa most populous country is set to become the fastest growing African economy in 2018
Political instability especially in Oromo region however, continues to be a threat and is likely to clip Ethiopia wings.
East Africa most populous country is set to become the fastest growing African economy in 2018.
Ethiopia, which has held the position for most of the past decade has overtaken Ghana as Africa’s fastest growing economy, the International Monetary Fund (IMF) said on Tuesday.
Ethiopia,whose gross domestic product is almost double Ghana’s rise to the top is thanks to investors including General Electric Co., Johannesburg-based Standard Bank Group and hundreds of Chinese companies who have in the recent past set bases in the horn of Africa.
In 2017, Ethiopia overtook Kenya to emerge as East Africa’s biggest economy after her annual economic output hit $72.52 billion compared to Kenya’s Sh7 trillion ($68.91 billion).
Ghana – the second-biggest economy – is expected to experience a 6.3 per cent gain this year, according to the IMF’s World Economic Outlook.
The figure is lower than the 8.9 per cent forecast in October, and is also less that the raised 7.4 per cent estimate for Cote d’Ivoire and the prediction for Ethiopia, which was held at 8.5 per cent.
Oil, gold and cocoa are the mainstay of Ghana’s US $43 billion economy, which surged 8.5 per cent last year as the Sankofa crude field started up in May.
Ghana’s growth booms and busts have been closely linked to oil since it became a producer in 2010.
The IMF increased its forecast for expansion in sub-Saharan Africa to 3.4 percent this year and 3.7 percent the next “as the challenging outlook in commodity exporters gradually improves,” it said.
Africa’s two largest economies which account for almost half of the region’s GDP are also on the rise.
Nigeria, Africa’s most-populous nation and top crude producer, will grow 2.1 per cent, matching the lender’s estimate released in the 22 January update to the outlook, while South Africa, the world’s biggest source of platinum, will expand 1.5 percent, more than the 0.9 percent prediction three months ago.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: