World Bank forecasts economic growth in Sub-Saharan Africa

THE latest World Bank Group Pulse report, released on Wednesday, projects a cautiously optimistic trajectory for Sub-Saharan Africa's economic activity.

- YOGASHEN PILLAY

According to the report, growth is forecasted to improve from 3.3% in 2024 to 3.5% in 2025, and is set to accelerate further to 4.3% in 2026-27.

However, this outlook is tempered by the sluggish performance of some of the region's largest economies, specifically Angola, Nigeria, and South Africa.

However, when these major players are excluded from the equation, the rest of Sub-Saharan Africa is expected to see a growth rate of 4.6 percent in 2025, potentially climbing to 5.7 percent by 2026-27.

The report emphasised that these projections hinged on a backdrop of increased risks, particularly stemming from global policy uncertainties.

"This outlook is subject to heightened risks arising from global policy uncertainty.

"As inflation cools down and converges to targets, and (global and domestic) financial conditions remain accommodative, it is expected that household consumption and investment will support the region's growth acceleration," it stated.

On the sectoral front, services are projected to remain a robust contributor to the economy between 2025 and 2027, largely propelled by recoveries in information and communications technology (ICT), finance, and tourism.