Angola and Mozambique are two of the countries in sub-Saharan Africa that are expected to see the biggest rates of growth in 2014 and over the next few years, according to the World Bank in its Global Economic Outlook report published Wednesday.
According to the document, Angola is expected to have posted growth of 5.1 percent in 2013 and this rate will increase to 8 percent this year and then slow to 7.3 percent and 7 percent in the next two years, whilst Mozambique’s economic growth will rise from 7 percent in 2013 to 8.5 percent in 2014 and 2015.
“Growth in the sub-Saharan region is expected to be bolstered by both countries with natural resources and the others. Oil exporting countries, led by Angola, will grow by an average of 6.4 percent between 2014 and 2016,” the report said.
This “growth will also remain robust in many mineral exporting countries, including Ghana, Mozambique and Tanzania, based on influxes of foreign direct investment in the natural resources sector and increased production at projects already underway,” the report said.
In a scenario of significant drops in the prices of raw materials, the report said that Angola would be one of the most affected countries due to its strong dependence on oil.
“The oil exporters, especially those with less diverse economies, such as Angola and Gabon, would be the most affected, with GDP dropping by 3.8 percentage points against projections and with the deficit worsening by 10.8 percentage points,” said the World Bank. (macauhub)