ABN - Africa’s two largest economies Nigeria and South Africa are expected to lift sub-Saharan African growth next year after their central banks move to cut rates in each of the struggling economies.
A poll conducted by Reuters said that Africa’s single largest economy Nigeria will experience a growth of 2.4% in 2018, up from just 0.8% this year, while South Africa will grow by 1.2% in 2018.
This is compared to a growth of 0.7% this year in South Africa, Africa’s most industrialised country. Both nations slipped into a recession during the last year, before rising out of the slumps in the second quarter.
Now economists are suggesting that Nigeria and South Africa will wait until January or March to cut interest rates, a move which should boost the recovering economies.
The poll comes after the World Bank reported that economic development was slowing across sub-Saharan Africa as a result of weak investment and productivity.
Nigeria and South Africa currently contribute more than half of the region’s gross domestic product despite their recent struggles.