The collapse in oil prices has weighed on the Algerian economy, giving rise to twin deficits in the budget and current account. In mid-2016 the government introduced a bold medium-term plan that targets a balanced budget by 2020, alongside a new growth model with a strategy for economic development and diversification by 2030. These moves have coincided with the private sector playing a much stronger role in the economy.
Higher levels of energy production, supported by rising prices, underpinned a recovery in Nigeria’s economy in 2017, with further gains expected this year.
Rising industrial and energy output, along with steady declines in inflation and debt levels, combined to support accelerated growth in Ghana in 2017, and continued fiscal reforms point to a positive outlook for 2018.
A slowdown in agricultural activity, tighter credit conditions and political uncertainty have contributed to a mixed year for Kenya, with the country scaling down internal growth forecasts.
Improved performance in Egypt’s key sectors, tighter fiscal management and increased capital inflows drove an economic rebound last year, with growth expected to accelerate further in 2018.
A strong mid-year performance helped lift South Africa’s economy out of recession and back into positive territory in 2017. However, factors such as high unemployment and an expanding deficit could rein in growth in 2018.
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