The International Monetary Fund (IMF), on Tuesday, released its World Economic Outlook which contained economic projections of countries in terms of growth or decline. Contained in it, Ethiopia is ranked as being Africa’s fastest growing economy. This position was formerly occupied by Ghana.
According to its ranking, Ethiopia is projected to experience an 8.5 percent increase this year. Newly second-placed and Africa’s second biggest economy, Ghana, is projected to experience a 6.3 percent growth this year. As at October last year, Ghana was projected an 8.9 percent increase but this has dropped such that it is lower than that of Cote d’Ivoire at 7.3 percent.
Ghana’s US $43 billion economy is as a result of commodities including oil, gold and cocoa which saw an 8.5 per cent surge last year as the Sankofa crude field started up in May.
Ghana’s growth booms and busts have been closely linked to oil since it became a producer in 2010.
Ethiopia, whose gross domestic product is almost double Ghana’s, has drawn investors including General Electric Co., Johannesburg-based Standard Bank Group and hundreds of Chinese companies.
The IMF increased its forecast for expansion in sub-Saharan Africa to 3.4 percent this year and 3.7 percent the next “as the challenging outlook in commodity exporters gradually improves,” it said.
Nigeria, the region’s most-populous nation and top crude producer, will grow 2.1 per cent, matching the lender’s estimate released in the 22 January update to the outlook, while South Africa, the world’s biggest source of platinum, will expand 1.5 percent, more than the 0.9 percent prediction three months ago. The two economies account for almost half of the region’s GDP.