However, the bank singled out Nigeria as a country in the African sub-region where growth would remain robust in a report entitled: ‘Global Economic Prospects’, which was released in Washington on Wednesday.
The report stated, “In sub-Saharan Africa, strong domestic demand underpinned GDP growth of 4.7 per cent in 2013, up from 3.7 per cent the previous year. The regional aggregate was depressed by weak 1.9 per cent growth in South Africa due to structural bottlenecks, tense labour relations and low consumer and investor confidence.
“Excluding South Africa, average regional GDP growth was six per cent in 2013. Fiscal and current account deficits widened across the region, reflecting high government spending, falling commodity prices, and strong import growth.
“Medium-term prospects for the region remain favourable, with GDP growth projected to remain broadly stable at 4.7 per cent in 2014, before rising moderately to 5.1 per cent in each of 2015 and 2016, supported by firming external demand and investments in natural resources, infrastructure, and agricultural production.
“Growth is expected to be particularly strong in East Africa, increasingly supported by FDI flows into offshore natural gas resources in Tanzania, and the onset of oil production in Uganda and Kenya. Although growth will remain subdued in South Africa, it will pick up modestly in Angola and remain robust in Nigeria, the region’s largest economy.”
Developing countries are headed for a year of disappointing growth, as first quarter weakness in 2014 has delayed an expected pick-up in economic activity, the bank said.
Bad weather in the United States, the crisis in Ukraine, rebalancing in China, political strife in several middle-income economies, slow progress on structural reforms, and capacity constraints are all contributing to a third straight year of sub-five per cent growth for the developing countries as a whole, the bank added.
Acknowledgement: World Bank, TUN Telev, www.reubenabati.com
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