African economies to grow in 2016 - World Bank

The World Bank predicts that African economies will expand in 2016.

According to the Global Economic Prospects report released by the lender, economic growth in Sub-Saharan Africa will accelerate to 4.2% in 2016 from 3.4% in 2015.

However, activity is expected to remain subdued in the region’s three largest economies.

In Nigeria, power and fuel shortages and fiscal consolidation, which weighed on activity in 2015, are expected to diminish gradually.

Growth is expected to remain weak in South Africa, as inadequate power supply, weak business confidence and policy tightening slow activity.

In Angola, government spending remains constrained and rising inflation has weakened consumer spending.

The region’s low-income countries are expected to continue to sustain high GDP growth.

Commodity prices are expected to stabilize but remain low through 2017 while the normalization of U.S. monetary policy is expected to tighten global financial conditions.