Africa’s economy has been off to a good start in 2018, according to the World Economic Outlook published by the International Monetary Fund (IMF) on April 17, 2018. The IMF released the national accounts figures of African countries with revisions that indicated more positive momentum. The economic growth of Africa, which was projected to reach 3.1Pct in 2018, was observed after a slow down in recent years, as the report states. The same trend holds true in sub-Saharan Africa, which was projected to grow by 3.4Pct this year. Nonetheless, in spite of the optimistic forecasts, the IMF’s board of governors warned the continent to be cautious, as the positive growth trends assumed commodity prices will rise or remain stable, and that African countries will implement big macro economic and structural reforms in the remaining months of the year.
Libya, which has an economy in recovery, is expected to be the star performer among African countries this year. But, this is not due to smart planning or effective governance; instead it it is because the country is recuperating from a civil war. The restarting of crude oil production is expected to contribute to the recovery of the country’s economy. Ethiopia is next on the list, with a real gross domestic product projected to grow by 8.5Pct in 2018. According to the projection, Ethiopia’s GDP is expected to surpass Ghana’s economy in 2018. The latter’s economy, according to IMF, is forecasted to grow by 6.3Pct this year, a drop from the 8.9Pct forecast in October 2017.
Source: World Economic Outlook, IMF
6th Year . May 16 – June 15 2018 . No.61