High commodity prices will buoy much of sub-Saharan Africa in 2012, but South Africa will continue to stumble due to its deep ties to crisis-ridden Europe, the International Monetary Fund said on Tuesday. The IMF also Tuesday predicted a 7.1 per cent growth in Nigeria’s economy this year.
Growth in sub-Saharan Africa will pick up to 5.4 percent this year thanks to new mineral and oil production and the growth of export markets outside Europe, according to the fund’s latest world economic outlook. But South Africa, the region’s largest economy, will grow by a modest 2.7 percent this year, as it struggles with weaker terms of trade and a decrease in business confidence. “Sluggish growth in South Africa may require some policy support,” the report said.