Economic growth in sub-Saharan Africa grew by 4.5 percent in 2014 compared with 4.2 percent in 2013, the World Bank (WB) said in its latest report received on Thursday.
The WB’s Global Economic Prospects 2015 attributed the moderate growth to investment in public infrastructure, increased agriculture production, and buoyant services were key drivers of growth.
"Foreign Direct Investments (FDI) flows, an important source of
financing of fixed capital formation in the region, declined in 2014, reflecting slower growth in emerging markets and soft commodity prices," WB said in the report.Among frontier market countries, growth is expected to increase in Kenya, boosted by higher public investment and the recovery of tourism.The report notes that high interest rates and inflation would weigh on consumer and investor sentiment in Ghana, slowing economic activity.The regional GDP growth is projected to remain broadly unchanged at 4.6 percent in 2015, rising gradually to 5.1 percent in 2017, supported by sustained infrastructure investment, increased agricultural production, and expanding service sectors.According to the report, commodity prices and capital inflows are expected to provide less support, with demand and economic activity in emerging markets remaining subdued."Growth will remain robust in most low-income countries, […]