The International Monetary Fund (IMF) has said that Nigeria, South Africa and Angola the three largest economies in Africa are impeding the continent’s economic growth.
The Fund, therefore, called on the three countries to ensure solid economic footing in order to accelerate the continent’s economic growth.
The IMF Chief Economist, Mr Maurice Obstfeld, who gave the charge while unveiling the October 2018 World Economic Outlook, in Bali, Indonesia, observed that their proper footing would check impediment of the growth of the African economy.
According to him, the continent will continue to experience slowdown in growth as long as the three largest economies are not performing up to their potential.
He said: “Nigeria’s growth is at 1.9 per cent this year to 2.3 per cent next year and South Africa with 0.8 per cent this year, Angola contracting by 0.1 per cent this year.
“So the aggregate is over three per cent this year and close to four per cent next year and this is in spite of the fact that the largest economies in the continent are doing poorly”, the finance expert added.
Obtsfeld pointed out the continent could do much better once the countries got solid economic footing, particularly South Africa and Nigeria, adding that “this is because they are really large countries and their economic activities will always have effect on their neighboring countries.’’
According to the report, Africa’s growth performance varies according to countries, while about half of the expected pickup in growth between 2017 and 2018 reflects the growth rebound in Nigeria.
The report stated: “Nigeria’s growth is projected to increase from 0.8 per cent in 2017 to 1.9 percent in 2018 and 2.3 percent in 2019 (0.4 percentage point higher than in the April 2018 WEO for 2019).This is buoyed by the impact of recovering oil production and prices,” the report indicated.
It indicated also that inflation pressures in sub-Saharan Africa had broadly softened, with annual inflation projected to drop to 8.6 per cent in 2018 and 8.5 per cent in 2019, from 11 per cent in 2017, stating further that “for Nigeria, inflation is projected to fall to 12.4 per cent in 2018, from 16.5 per cent in 2017 and to rise to 13.5 per cent in 2019.
The report projected that the global growth would peak at 3.7 per cent for 2018-19, which is 0.2 percentage point lower for both years than was forecast in April.
The IMF advised countries to foster cooperation and work together to tackle challenges that extend beyond their borders