GDP growth in 2018 in Sub-Saharan Africa is estimated at 2.3%, down from 2.5% in 2017, the World Bank (WB) indicates in its latest Africa’s Pulse report volume 19 of April 2019.
The document is an analysis of the issues shaping the future of the African economies that the Bank release each year.
Among non-resource-intensive countries, growth remains robust but decelerated in several economies in 2018, due to a wide array of factors, including foreign exchange shortages (Ethiopia), slow credit growth to the private sector (Tanzania), falling output in the cash crop sector (Côte d’Ivoire), and macroeconomic instability (Sudan).
Solid economic growth was recorded in Q4 2018 in Ghana, Kenya, Rwanda, Uganda, Tanzania, and several economies in the West African Economic and Monetary Union (WAEMU).
Although it remains robust, growth softened noticeably, however. In Uganda and Tanzania, reserves fell as the current account deficit widened.
The Bank estimates that growth will stabilize but remain softer than in the recent past in several fast-growing economies, including Côte d’Ivoire, Ethiopia, and Tanzania, reflecting maturing public investments, fiscal consolidation, and a difficult business environment in some countries.
According to the African Economic Outlook 2019 report by the African Development Bank (AfDB), Tanzania’s real GDP growth was 6.7% in 2018, down from 7.1% in 2017.
For the AfDB the medium-term outlook is positive, with growth projected at 6.6% in both 2019 and 2020, supported by large infrastructure spending.