Africa will see a lift in economic growth this year and next on the back of a rebound in global commodity prices.
The African Development bank’s African Economic Outlook expects the continent’s economy to grow by 3.4 percent in 2017 and 4.3 percent in 2018. A decline in commodity prices starting in mid-2014 had a devastating impact on several commodity-exporting African economies. Nigeria, for example, which has the biggest share in Africa’s GDP, slipped into recession. The fall in raw materials prices inflicted a significant shock on sub-Saharan Africa as fuels, ore and metals account for more than 60 percent of the region’s exports.
The report says that if the rise in commodity prices is sustained, it would trim the continent’s current account deficit to 5 percent of GDP this year from 6.5 percent in 2016.