The World Bank said on Monday it had lowered its economic growth forecast for sub-Saharan Africa this year to 3% from 3.4% mainly due to the destruction of Sudan’s economy in a civil war.
“This is still a recovery that is basically in slow gear,” Andrew Dabalen, chief economist for the Africa region at the World Bank, told a media briefing on Monday.
Growth in the region’s most advanced economy, South Africa, is expected to increase to 1.
1% this year and 1.6% in 2025, from 0.
7% last year.
The sub-Saharan Africa region grew at a robust annual average of 5.
3% in 2000-2014 on the back of a commodity supercycle, but output started flagging when commodity prices crashed.
“There are staggering levels of interest payments,” Dabalen said, attributing this to a shift by governments to borrow from financial markets in the last decade and away from the low-priced credit offered by institutions like the World Bank.
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