Lagos - The insecurity threats in some parts of the country could slow economic growth in Sub Saharan Africa, the World Bank has warned.
“The region is relatively insensitive to rising global interest rates, but very vulnerable to sharper than projected declines in commodity prices and domestic risks related to weather shocks to local harvests and food prices, political strife, security risks in northern Nigeria, and pirate attacks along the gulf of Guinea, which could raise shipment costs and disrupt regional trade,” the Bretton Woods institute reported.
The bank nonetheless said robust domestic demand, relatively resilient foreign direct inflows and lower inflation should help support regional growth of about 5.3 percent in 2014, 5.4 percent in 2015 and firming to
5.5 percent in 2016.
World Bank added that economic growth picked up in the region in the past year, supported by strong resource-based investments.
According to the bank, real gross domestic product (GDP) growth strengthened to an estimated 4.7 percent for the region.
“Excluding South Africa, the average growth for the rest of the region was 6.0 percent. The recovery during the first half of 2013 was weak among oil exporters (Angola, Gabon, Nigeria), while industrial output in South Africa contracted in Q3,” the bank added.
- CAJ News