Global Economy: World Bank Foresees Slight Growth

Its 2017 Global Economic Prospects believes public investments could bring private sector off the side-lines to hit an envisaged 2.7 per cent GDP.

The World Bank believes the global economy could this year grow moderately, better than in recent years when disturbing economic, financial and security crises almost crippled countries. According to its 2017 Global Economic Prospects published on January 10, 2017, “a moderate recovery is expected in 2017, with global growth forecast to increase to 2.7 per cent, mainly driven by improvements in emerging markets and developing economies.

Fiscal stimulus measures in major economies- especially the USA could lead to stronger-than-expected global growth.” It represents an improvement from 2016 when the world economy grew by 2.3 per cent, the weakest performance so far since the financial crisis hit the globe. In Sub Saharan Africa, economic growth is expected to pick up slightly to 2.9 per cent this year as the region continues adjustments to lower commodity prices. While growth in oil exporting countries is projected to be weaker, owing to the sharp fall in price per barrel, that of economies that are not natural-resource intensive should logically remain robust. 

The Central African Economic and Monetary Community (CEMAC) has mixed fortunes. While growth in Cameroon, Congo and Gabon is projected to stay afloat, other economies of the sub region would continue to wallow in red. Cameroon is projected to grow by 5.7 per cent in 2017 up from 5.6 per cent in 2016, Congo, 4.3 per cent down from 4.6 per cent last year meanwhile, Gabon will get to 3.8 per cent this year up from 3.2 per cent last year. But the case of Chad, -0.3 per cent and Equatorial Guinea, -5.7 per cent remain preoccupying.

Within or without CEMAC, the World Bank holds that domestic risks persist. These include failure to adjust to low commodity prices and weak global demand. “Populist pressures may deter authorities from taking the necessary measu...