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Subject

African economies prospects to year-end 2017

Significance

Economic momentum will pick up during the second half of the year as the exogenous shocks of 2016 ease further. Commodity prices, particularly for metals, have risen on the back of the improved outlook for global growth, the extension of the OPEC oil supply cut arrangement until 2018 and stronger demand from China. However, the risk that these largely external conditions could quickly unwind is reflected in diverging growth predictions for the region this year. Official forecasts range from the IMF's 2.6% to the African Development Bank's 3.3%, both up from 1.4% in 2016.

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