The International Monetary Fund (IMF) has said that Nigeria and South Africa will continue to draw back the economic growth of the rest of sub-saharan Africa if steps are not taken to address policy uncertainties holding back growth in the two countries.
In its latest Regional Economic Outlook report, launched in Abuja, yesterday, IMF said although economic recovery in most parts of sub-saharan Africa was expected to pick up from three per cent in 2018, to 3.5 per cent, the aggregate growth rate in the two countries in 2019 is expected to be about 2.1 per cent.
The report said the growth rate in the region, expected to stabilise slightly below four per cent or reach five per cent in 21 countries, would exclude Nigeria and South Africa, the region’s two major economies.
“Half of the region’s countries, mostly non-resource-intensive, are expected to grow at five per cent or more, and see a faster rise in income per capita than the rest of the world on average over the medium term,” the report said.
“However, the remaining 24 countries, comprising mostly resource-intensive countries, including Nigeria and South Africa, which are more than two-thirds of the region’s total population, are expected to fall behind,” it added.