The World Bank has cut its growth forecast for sub-Saharan Africa in 2018 from 3.1 per cent to 2.7 per cent.

This represents a slight increase from 2.3 per cent in 2017.

The World Bank in its October edition of the African Pulse, which is a bi-annual analysis of the state of African economies, stated that the October projection was partly due to less than favourable external environment for the region.

At the presentation of the report, World Bank Chief Economist for Africa, Albert Zeufack, said the region’s economic recovery was in progress but at a slower pace than expected.

According to Mr. Zeufack policymakers must continue to focus on investments that foster human capital, reduce resource misallocation and boost productivity to accelerate and sustain an inclusive growth momentum.

“Policymakers in the region must equip themselves to manage new risks arising from changes in the composition of capital flows and debt,” he said.

The report stated futther that “the slower pace of the recovery in sub-Saharan Africa (0.4 percentage points lower than the April forecast) is explained by the sluggish expansion in the region’s three largest economies, Nigeria, Angola, and South Africa.”

The World Bank stated further that lower oil production in Angola and Nigeria offset higher oil prices, and in South Africa, weak household consumption growth was compounded by a contraction in agriculture.