JUST IN

Wednesday, April 27, 2016

From world 3rd fastest growing economy, Nigeria drops out of Top 15 in Africa

http://pic.twitter.com/39DWt8Nt9t
buhaxHaving enjoyed blissful growth over the past
decade, Nigeria was one of the fastest growing
economies in the world, but it is not one of the 15
fastest growing economies in Africa for 2016.
In 2014 and early 2015, Nigeria was named the
third fastest growing economy in the world by
CNNMoney, with China and Qatar, taking the lead
at 7.3 percent, 7.1 percent gross domestic product
(GDP) growth.
For 2016, however, the coast is cloudy, and Nigeria
is nowhere near the fastest growing economies in
Africa.

According to the International Monetary Funds
(IMF) World Economic Outlook for 2016, as revised
in April, the fastest growing economy in Africa for
2016 is Cote d’Ivoire and the slowest is Chad,
which is expected to record negative growth.
Cote d’Ivoire is expected to experience an 8.5
percent rise in GDP, while Nigeria’s neighbour,
Chad, would see a -0.4 percent growth.
Cote D’Ivoire (8.5%), Tanzania (6.9%), Senegal
(6.6%), Djibouti (6.5%), Rwanda (6.3%), Kenya
(6.0%), Mozambique (6.0%), Central African
Republic (5.7%), Sierra Leone (5.3%) Uganda
(5.3%).

Madagascar, Zambia and Chad are expected to see
a growth of 4.1 percent, 3.4 percent, 3.2 percent
respectively.

The fastest growing economies in Africa by GDP
growth rate, as projected by IMF for 2016, are:
Cote D’Ivoire (8.5%), Tanzania (6.9%), Senegal
(6.6%), Djibouti (6.5%), Rwanda (6.3%), Kenya
(6.0%), Mozambique (6.0%), Central African
Republic (5.7%), Sierra Leone (5.3%) and Uganda
(5.3%).

DR Congo expects a GDP growth of 4.9 percent,
Cameroon; 4.9 percent, Ethiopia; 4.5 percent,
Ghana; 4.5 percent and Republic of Congo; 4.4
percent.

Madagascar, Zambia and Chad are expected to see
a growth of 4.1 percent, 3.4 percent, 3.2 percent
respectively.

Major oil exporters, Angola and Nigeria, hard hit
by the slump in crude oil prices, are projected to
see a growth 2.5 and 2.3 percent.
At 2.3 percent, Nigeria is expected to see its
poorest GDP growth since the return of
Democracy in 1999.

This development has become a point of concern
for the IMF, and the World Economic Forum (WEF),
which would be having its meeting on Africa later
in May.

According to the World Economic Forum, Africa’s
positive economic outlook is under pressure with
the growth rate expected to remain just under 5
per cent. Foreign direct investment flows are
expected to continue to grow, although at a slower
pace.

Rwanda has transformed dramatically since the
1994 genocide and is now placed 5th in the fastest
growing African economies. The country is one of
the continent's most competitive economies and a
top reformer in improving the business
environment.

Ahead of the World Economic Forum on Africa in
May, it is important to recognise the major
challenges that many African economies face.
Some of the major threats include commodities
slump, currency devaluations and geo-security
risks.

“It is important to recognize the challenges that
many African economies face – the commodities
slump, currency devaluations and geo-security
risks all threaten growth,” WEF explained.

The Forum says its May meeting will highlight the
need for diversification in order to ensure
inclusive economic growth, tapping into the fourth
industrial revolution’s potential to create new
industries and help reduce inequality across the
continent.

The World Economic Forum on Africa 2016 will
take place in Kigali, Rwanda from 11-13 May

No comments:

Post a Comment

Search