Business
IMF: Africa’s economic outlook positive in 2012
Oil exporting sub-Saharan countries are projected to grow by7.3 percent in 2012, buoyed by Angolan oil production.
Nigeria, another major oil producer, will grow by 7.1 percent.
Despite the generally rosy predictions, the IMF warned of knock-on effects to African economies if Europe tumbles further.
Such a shock would likely be transmitted via South Africa,and would hit African exports, remittances, aid and private investment.
“Adverse shocks affecting South Africa can quickly spread to neighboring economies, through their effect on migrant workers’ incomes, trade, regional investment, and finance,” the report noted.
South Africa should consider further monetary easing if the slowdown continues, the report noted, as long as inflation remains low.
