This follows a revelation from its (IMF) World Economic report for 2019.
IMF projects a massive economic growth for Africa within 2019 and 2020
The International Monetary Fund (IMF) has projected that sub-Saharan Africa among other regions in the world is likely to record an accelerated economic growth in 2019 and 2020.
According to the report, one-third of sub-Saharan economies are expected to post growth above 5 per cent, raising optimism of impressive performance amid a slowdown in global growth and a year when external shocks, including trade tensions, rising U.S. interest rates, dollar appreciation, capital outflows and volatile oil prices are expected to continue.
The Gross Domestic Product (GDP) growth in sub-Saharan Africa will rise from 2.9 per cent posted in 2018 to 3.5 per cent this year, and 3.6 per cent in 2020.
Growth for oil-producing countries such as Angola and Nigeria have been significantly impacted by a 0.3 percentage point decline. This decline has hence made the countries seen oil prices fall from a higher amount of $85 per barrel to an average amount of $60 this year.
However, the report further indicates that challenges of ballooning debt, expanding recurrent expenditures and a slowdown in revenue mobilization will continue to curtail growth in the region.
“Across all economies, measures to boost potential output growth, enhance inclusiveness and strengthen fiscal and financial buffers in an environment of high debt burdens and tighter financial conditions are imperatives,” the report said.
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