IMF Sees Ethiopia Beating Ghana as Fastest-Growing Africa Economy

0
475
  • East African economy has held position for most of past decade
  • Ghana GDP surged 8.5% in 2017 as Sankofa field started output

Ghana has lost its mantle as the African economy likely to grow the quickest this year to Ethiopia, which has held the position for most of the past decade, International Monetary Fund data showed.

West Africa’s second-biggest economy should expand 6.3 percent this year, the IMF said in its World Economic Outlook released Tuesday. That’s lower than the 8.9 percent forecast in October, and is also less than the raised 7.4 percent estimate for Ivory Coast and the prediction for Ethiopia, which was held at 8.5 percent.

Commodities including oil, gold and cocoa are the mainstay of Ghana’s $43 billion economy, which surged 8.5 percent last year as the Sankofa crude field started up in May. Its growth booms and busts have been closely linked to oil since it became a producer in 2010. Ethiopia, whose gross domestic product is almost double Ghana’s, has drawn investors including General Electric Co., Johannesburg-based Standard Bank Group and hundreds of Chinese companies.

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

Nigeria, the region’s most-populous nation and top crude producer, will grow 2.1 percent, matching the lender’s estimate released in the Jan. 22 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. The two economies account for almost half of the region’s GDP.

Forecasts from the World Bank and African Development Bank in January also showed Ghana would expand the fastest this year.

The World Bank reduced its forecast for economic growth in sub-Saharan Africa this year to 3.1 percent from 3.4 percent seen in October, it said in the Africa Pulse report released Wednesday.

SHARE
Previous articleNigeria Senate Mace Theft Augurs Tensions Ahead of 2019 Vote
Next articleCourt affirms Adetimehin as Ondo APC chairman
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.