WASHINGTON – Sub-Saharan Africa's economy will expand faster than previously forecast next year as strong domestic demand should help boost growth in both resource-rich and poorer economies in that region, the International Monetary Fund said. The region's economy will grow 6.1 percent in 2014, more than the previous estimate of 5.7 percent and the 5.6 percent projected growth for this year, the Washington-based IMF said in its World Economic Outlook released Tuesday. “A main driver of growth in 2014 will be the strengthening of activity in South Africa and other middle-income countries, predicated on improvements in the external environment,” according to the report. “Similarly, some low-income and fragile countries are expected to do better, including those currently experiencing internal conflict.” Export demand is set to improve as Europe emerges from a recession and growth in China fuels demand for commodities such as copper, iron ore and oil from sub-Saharan Africa. Inflation will probably slow to an average of 6.3 percent in 2014 from an estimated 7.2 percent this year and 10 percent in 2011 as central banks in East Africa raised borrowing costs to curb price increases, food prices fell and output increased, the IMF said. “The success in reducing inflation has provided room for a gradual easing of the monetary policy stance in several countries,” the IMF said. The economies of Ivory Coast, the world's largest producer of cocoa, and Mozambique, the site of the world's biggest gas discovery in the past decade, will both expand 8 percent next year, the fastest pace in the region, according to the report. Nigeria, Africa's top oil producer, will expand 7 percent in 2014, down from an estimated 7.2 percent this year, the IMF said. Growth in South Africa, the continent's largest economy, will probably accelerate to 3.3 percent from 2.8 percent this year as mining production rebounds, it said. More concerns about the strength of the global economy sent the price of oil down for the fourth straight day. Oil fell as low as $86.06 a barrel Tuesday before recovering to $88.33 a barrel, down 38 cents, in afternoon trading on the New York Mercantile Exchange. Oil dropped nearly 3 percent Monday. Brent crude, which is used to price oil used by many US refiners to make gasoline, was down $1.45 to $99.18 a barrel on the ICE Futures exchange in London. Brent hasn't traded below $100 a barrel since July. Crude has fallen by nearly 10 percent this month on concerns about the sluggish global economy, while supplies of oil remain ample. The IMF cut its outlook for the world economy this year. – Agencies
