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.
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.Growth in sub-Saharan Africa will pick up to 5.4 percent this year thanks to new mineral and oil production and thegrowth of export markets outside Europe, according to the fund’slatest world economic outlook. But South Africa, the region’s largest economy, will grow bya modest 2.7 percent this year, as it struggles with weakerterms of trade and a decrease in business confidence."Sluggish growth in South Africa may require some policysupport,” the report said.South Africa depends on Europe as a market for its highvalue-added exports, and has seen soaring unemployment, stockmarket volatility and currency depreciation, due to the eurozone’s sovereign debt crisis.