Business
Africa to maintain solid growth in 2013 and 2014 – IMF
The South African economy, hobbled this year and last by “sluggish mining production” and a downturn in key eurozone export markets, is forecast to grow at 3.3 percent in 2014.
In 2012 South Africa was rocked by a series of labor strikes, which mine owners estimated cost the economy around US$1.2 billion.
The IMF admits that the regional outlook for 2014 depends on improvements in the economic outlook for Europe and other key export markets.
It warns that some African economies remain vulnerable to external shocks – such as lower Chinese growth figures negatively impact gold prices and potentially other commodities.
“The main risks to the outlook for sub-Saharan Africa stem from the external environment, although domestic security and political risks should not be discounted,” the report stated.
“On the positive side, Angolan oil production strengthened, and Ivory Coast experienced a sharp rebound in economic activity after the election-related disruptions of 2011.”
The IMF encouraged a continuation of spending to improve infrastructure and boost production capacity, both of which have helped fuel the rise of African consumers.
