Modest growth recovery in Sub-Saharan Africa

Economic growth in Sub-Saharan Africa is on the path to recovery, with projected growth of 2.4% in 2017, up from 1.3% in 2016, according to the latest Africa's Pulse report by the World Bank. This growth trajectory marks a turning point for the region, which had been grappling with sluggish growth rates in the previous year. Punam Chuhan-Pole, World Bank Lead Economist for the Africa Region, discussed the key findings of the report in an interview with CNBC Africa. One of the main highlights of the report is the resurgence of growth in some of the larger economies in the region. Nigeria, after enduring a five-quarter recession, showed signs of recovery in the second quarter of 2017. Similarly, South Africa emerged from two quarters of negative growth, while Angola also experienced an uptick in economic activity. These countries have been instrumental in driving the overall growth in Sub-Saharan Africa. However, the growth dynamics across the region are varied, with some countries benefitting from the recovery in mining production and agriculture, while others, particularly oil-dependent nations, continue to face challenges due to low commodity prices. The report also noted that global economic conditions have been favorable, with robust growth in advanced economies and emerging markets, as well as higher commodity prices for oil and metals. While the overall growth outlook for the region is positive, there are lingering concerns about the sustainability of this recovery. Per capita income in real terms is still declining, with growth rates below population growth. Moreover, investment and productivity growth have slowed, indicating underlying weaknesses in the economy. The current growth levels, although an improvement from the previous year, are still below historical averages for many countries in the region. Additionally, debt levels in some countries are on the rise, driven by persistent fiscal deficits. Despite a projected slight narrowing of deficits in 2017, the elevated debt levels pose a challenge to long-term economic stability. Looking ahead, it will be crucial for policymakers in Sub-Saharan Africa to address these structural weaknesses and foster a more sustainable growth trajectory. The region's potential for growth remains promising, but concerted efforts will be needed to ensure that the benefits of this recovery are inclusive and enduring. With a nuanced understanding of the economic landscape, policymakers can navigate the complexities of the global economy and steer Sub-Saharan Africa towards a path of resilient and inclusive growth.