Most African countries have proven to have invested alot in their economies which consequently lead to growth, however Tanzania, Ethiopia and Djibouti are not left out among these countries. Reports have confirmed that Tanzania’s Gross Domestic Products (GDP) is tipped to grow by 7.2 per cent to become the world fourth fastest economy in this year while Ethiopia takes first.
The World Economic Prospect June report shows that the Tanzania’s economy is forecasted to grow at per with India GDP. Also, the report showed that the fastest growing economy in the world this year is Ethiopia at 8.3 per cent and the fifth globally is Djibouti at 7.0 per cent. These countries have recorded many successes in enhances the growth and development of their economy.
In addition, it was stated that the three non-resourceintensive economies, the only from Africa in top five, are expected to grow well above the Sub Sahara Africa average growth of 2.6 per cent in this year. This is majorly because the government of these countries have invested a lot in aiding economy growth.
“Growth in SSA is forecast to pick up to 2.6 per cent in 2017, and average 3.4 per cent in 2018-19, slightly above population growth. Growth in non-resource intensive countries is expected to remain solid, supported by domestic demand,” the report further stated.
It was further stated that the recovery was predicated on moderately rising commodity prices and reforms to tackle macroeconomic imbalances. These are proposed tactics that have enhance these countries’ growth. Also the countries with high inflation rate can not share in the rank of fast economy growth.
Furthermore, the report stated that weaker-than-forecast commodity prices, worsening drought conditions, and cut backs to US and official development assistance pose significant downside risks to the regional outlook with affected most countries from attaining the expected growth.
“A key domestic risk is the lack of implementation of re forms that are needed to maintain durable macroeconomic stability and sustain growth,” the report explained.
Two other countries that are also fast growing states but below Ethiopia and above Tanzania are Uzbekistan at 7.6 per cent and Nepal 7.5 per cent. These two countries are said to have invested a lot to enhance their economy status thereby making the cost of living of their citizens affordable.
It has been reported that in Africa, most of the economy growth recovery will come from Angola and Nigeria–the largest oil exporters. On other hand, it was added that investment was expected to recover only very gradually, reflecting still tight foreign exchange liquidity conditions in oil exporters.
Also, countries dealing with the exportation of metals will be affected with fiscal consolidation which will slow the pace of recovey.The two leading economies in SSA, South Africa and Nigeria were projected to recover from 0.6 per cent in 2017 to 1.5 per cent in 2018-19 and from 1.2 per cent in 2017 to 2.5 per cent in 2018-19.
African countries are stepping up in making sure that Africans enjoy the goodies of life. The continent which has the fastest growing economies has proven to the world that Africans are willing and ready for economic growth and development.
