IMF paints gloomy outlook for sub-Saharan Africa

This year’s slump in commodity prices and the end of a flood of cheap dollars has pegged back African growth to its weakest in six years and things could get worse if the global economy continues to flounder, the IMF said on Tuesday. In its latest African Economic Outlook, entitled “Dealing with the Gathering Clouds”, the Fund said the poorest continent was likely to grow 3.75 percent this year and 4.25 percent next, a big drop from the years before and after the 2008/2009 financial crisis.

“With the possibility that the external environment might turn even less favourable, risks to this outlook remain on the downside.” Hardest-hit have been sub-Sahara’s eight oil exporters – led by top producers Nigeria and Angola – although others such as Ghana, Zambia and South Africa were also suffering from weak minerals prices, power shortages and difficult financing conditions.

Reuters