Gian Maria Milesi-Ferretti, deputy director at IMF’s research department
made this known on Tuesday while addressing journalists at the ongoing
annual meetings of the International Monetary Fund and World Bank Group in
Bali, Indonesia.
He said the aggregate growth rate of Africa is being held down by its
three largest economies.
The IMF economist identified the three economies as Nigeria, South Africa
and Angola.
“The aggregate growth rate for the continent is held down by the fact that
the three largest economies are not performing up to their full
potential,” he said.
“Nigeria’s growth, 1.9 percent this year; 2.3 next year. South Africa,
only 0.8 percent this year. Angola, contracting by 0.1 percent this year.
So the aggregate — over three percent this year, close to four percent
next year — is despite the largest economies in the continent doing
poorly.
“The continent could do much better once these economies are on a more
solid footing, particularly South Africa and Nigeria because they are
really large and affect a number of countries in their neighbourhood.”
In the World Economic Outlook report released in July, the Bretton Wood
institution had projected that Nigeria’s economy would grow by 2.1 percent
in 2018 and 2.3 percent in 2019.
In the October edition of the report, IMF cut the growth projections for
2018 to 1.9 percent.
“In Nigeria and Angola, tighter monetary policy and moderation in food
price increases contributed to tapering inflation. In Nigeria, inflation
is projected to fall to 12.4 percent in 2018, from 16.5 percent in 2017,
and to rise to 13.5 percent in 2019,” the report read.
The World Bank recently cut its growth projections for Nigeria by 0.2%
citing reduction in oil production levels, and contraction in the
agricultural sector, following the herder-farmer crisis.