Macroeconomic Review For 2019 & Outlook For 2020: Navigating Through The Era Of Slow Growth

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EXECUTIVE SUMMARY

Global Economic Update: Global Growth slowed in 2019 but 2020 forecast appear optimistic

In 2019, global GDP grew by 3% with growth led by China and other emerging and developing countries.

Although growth projection for 2019 is an improvement over 2018, several factors limited overall GDP expansion in the year:

  • Slowdown in industrial output,
  • Growing tension between the US and China on Trade
    and Technology, and
  • Slowdown in demand in China were significant in affecting overall output.
  • For 2020, global GDP growth is expected to average of 3.4%.

Sub-Saharan Africa Review: SSA’s Growth driven by non-resource intensive countries

  • Africa has maintained steady growth in output in the last 3 years with growth averaging 2.7%.
  • The non-resource intensive countries have recorded much higher growth during this period led by Ethiopia, Rwanda and Senegal.
  • The oil-exporting countries have experienced a weak growth trajectory, largely as a result of exposure to external fluctuations of commodity prices.
  • Many of the oil-exporting countries Nigeria, Angola, slipped into a recession in 2016 and are still on the recovery path.
  • Growth is expected to increase further to 3.6% in 2020 driven by non-resource intensive countries.

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