Lagos, Jan. 10, 2023 – Economic Growth dropped sharply to 2.6 per cent in the three largest economies in Sub-Saharan Africa – Angola, Nigeria, and South Africa – in 2022.
The World Bank Group reported this in its Global Economic Prospects report released on Tuesday in Washington DC.
It reported that economic growth in Nigeria was weakened by production challenges in the oil sector.
“Annual inflation in Nigeria exceeded 21 per cent last year, its highest level in 17 years, prompting more policy tightening.
“Food affordability for vulnerable populations deteriorated further amid disruptions to farming and sizable population displacement because of recent devastating floods,” the report said.
The bank group President, David Malpass, was quoted as saying that the crises facing development in these countries were intensifying as the global growth outlook deteriorated.
“Emerging and developing countries are facing a multi-year period of slow growth driven by heavy debt burdens and weak investment as global capital is absorbed by advanced economies faced with extremely high government debt levels and rising interest rates.
“Weakness in growth and business investment will compound the already-devastating reversals in education, health, poverty and infrastructure and the increasing demands from climate change,” he said.
According to the report, South Africa’s economy grew by only 1.9 per cent as electricity shortages worsened.
It said that in Angola, policy uncertainty, flagging external demand, and disruption due to floods and strikes weighed on growth.
“High oil prices and stable oil production supported a 3.1 per cent rebound in Angola,” the report said. (GBN)
