African Economies Are Growing At Very Different Speeds, While Nigeria Is Mired In Recession! - Economist

How are sub-Saharan African economies doing? It depends on where you look, says the IMF in its latest survey of the continent, which was published this week. Regional growth will slow to just 1.4% this year, the most sluggish pace for two decades. Things look grim in Nigeria, which is mired in recession. But the Ivory Coast, a short flight away, is thundering along at a growth rate of 8%. Similar contrasts are found across the continent. Better to talk of two Africas, says the IMF, moving at different speeds.

The big divider is resources. As commodity prices have slumped, so too have the fortunes of big exporters. As a group, resource-rich countries will grow on average by 0.3% of GDP, says the IMF. Take oil-rich Angola, once the fastest-growing country on the continent: it will not grow at all this year, and is wrestling with inflation of 38%. Commodity-exporting countries saw the value of their exports to China almost halve in 2015. Public debt is rising sharply. Exchange rates are falling. Read More Here