WORLD Bank has forecasted Tanzania as the third fastest growing economy in Africa next year after Ethiopia and Ghana. In a brief report, Global Economic Prospects: Sub-Saharan Africa, the WB predicted Tanzania to grow 7.2 per cent behind Ghana 7.8 per cent and Ethiopia 8.3 per cent.
The Breton Wood institute said the growth in Tanzania and Ethiopia, non-resource intensive countries, would be helped by public investment. “Growth in non-resource intensive countries is anticipated to remain solid, supported by infrastructure investment, resilient services sectors, and the recovery of agricultural production,” WB said in a statement issued on Sunday.
The report brief further said weather-related risks are elevated in East Africa. “Worsening drought conditions will severely affect agricultural production, push food prices higher, and increase food insecurity in the subregion,” the bank said.
On the Sub-Sahara outlook, the bank said growth in the area was forecast to pick up to 2.6 per cent in 2017 and to 3.2 per cent in 2018, predicated on moderately rising commodity prices and reforms to tackle macroeconomic imbalances.
Per capita output was projected to shrink by 0.1 per cent in 2017 and 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, is projected to rise to 0.6 per cent in 2017 and accelerate to 1.1 per cent in 2018. Africa’s biggest economy, Nigeria, is forecast to go from recession to a 1.2 per cent growth rate in 2017, gaining 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