Biggest African Economies Stall on Politics, Commodity Slump
- Nigerian economy probably contracted in the second quarter
- Deteriorating politics can threaten growth in South Africa
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Africa’s two largest economies are stalling amid slumping commodity prices and political infighting that’s hampering decision making.
A government report on Wednesday will probably show Nigeria contracted for a second consecutive quarter in the three months through June as the price and output of oil, its main source of revenue, were squeezed. While South Africa may have avoided falling into a recession, according to the median estimate of five economists surveyed by Bloomberg, the continent’s most-industrialized economy will not grow this year, the nation’s central bank said last month.