Libya has replaced East African country Ethiopia as the continent’s fastest growing economy according to the latest report by the International Monetary Fund (IMF) and the African Development Bank (AfDB).
Other publications and analysts had set Ethiopia on the pedestal as Africa’s fastest growing economy in 2019, but its previous success in 2018 has been challenged.
However, Ethiopia leads East Africa’s fastest growing economy with an 8.5 per cent growth projection – second to Libya’s 10.8 per cent – as Rwanda follows behind with 7.8 per cent projection within the region.
Ethiopia’s growth projection remains the same to last year, where it was ranked first as Africa’s fastest-growing economy.
The forecast saw several foreign investors swarm in the country for business to have a pie of the nation’s economy.
East Africa remains the fastest-growing region in Africa – and one of the fastest in the world – with five of the continent’s 10 fastest-growing economies being in the eastern region.
The region also boasts as the continent’s preferred destination for investment, courtesy of a conducive business environment.
Currently, Libya has a GDP of over $50.95 billion as of 2017.
The Economy of Libya depends primarily upon revenues from the hydrocarbon activities, which represents over 95 per cent of export earnings and 60 per cent of GDP.
The oil revenues and a small population have given Libya one of the highest nominal per capita GDP in Africa.
Given its high reliance on hydrocarbon activities, the performance of the Libyan economy remains strongly aﬀected by security conditions, especially around the main oil fields and terminals, according to World Bank.
IMF cited Ghana as “an economic powerhouse in West Africa with a GDP size of approximately $51 billion” and the fourth fastest growing economy in Africa.
It is the fastest growing economy in Africa with a growth projection of 7.6 per cent, which is only 0.6 per cent better than Ivory Coast.
One of the biggest challenges for African nations highlighted in the report was the creation of enough jobs for the rapidly growing populations.
Technology has played a part in employment, but analysts fear it may take over the place for human labour hence limiting employment opportunities.