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China-Africa Trade Information Service
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China-Africa Trade Information Service
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In IMF World Economic Outlook, the IMF talked about Ghana's economic growth rate of 8.8%, which is expected to become the fastest growing economy in the world in 2019. Last year, the country's economic growth rate was 5.6%, ranking sixth in Africa.
Adu Owusu Sarkodie from the University of Ghana believes the main source of growth is the oil sector. "We have discovered new oil fields [.....] companies have started operating, they have intensified their operations."
In the list of top African countries growing economically, Ghana is closely followed by its neighbor Ivory Coast with 7.5%, and Ethiopia with 7.7%.
For Africa's number one growth state, Ghana, oil is not the only factor driving the economy."The non-oil sectors, agriculture, manufacturing and services, they are also picking up. Now they are all growing positively," Sarkodie said.
The agriculture sector has received a major boost over the past two years, thanks to a strong focus by policy-makers on food and jobs. For example, 200,000 farmers received improved seeds and fertilizers. The sector remains a major backbone of Ghana's economy. According to Agriculture Minister Owusu Afriyie Akoto, the program has led to a good harvest across the country. "We are expecting a bumper crop because of the impact that this great program has had on agriculture, even in its infancy," he said.
Angola comes in last on the list of African countries, with a predicted economic growth of just 0.4%. Last year it suffered a decline of 1.7%. South Africa is also far behind, with an expected growth rate of only 1.2%, an increase of 0.4% on 2018. Third from last is oil giant Nigeria, with a growth rate of 2.1%.
These countries have been hit very hard by the decline in commodity prices. These countries are now slowly recovering but it will take some time. It also requires countries to implement reforms to diversify the economy and to boost private sector activity by removing some of the constraints that are the biggest impediments to growth, as well as?restoring a better business environment.
The IMF divides the 46 listed countries into three groups: oil exporters, middle-income countries and low-income countries. The group of oil exporters, with a growth rate of 2.0%, is doing less well than middle-income countries with 3.4% and low-income countries with 5.3%, a trend that could already be seen in 2018. In total, sub-Saharan African can register GDP growth of 3.5%.
