Addis Ababa January 02/2018 Ethiopia is among the 17 economies that will grow faster than China in terms of Purchasing Power Parity (PPP) this year, according to projections of Price Water House Coopers’ (PwC’s) Global Economy Watch.
The other countries include India, Ghana, and the Philippines, New Telegraph reported.
The newspaper quoting PwC’s analysis added that eight of the ten fastest growing countries in 2018 could be in Africa.
According to PwC’s, China, the world’s largest economy in PPP terms, could grow by 6-7per cent in 2018, slower than previously, but in line with expectation.
New Telegraph further reported that the global economy is set to grow by almost 4 percent this year in Purchasing Power Parity (PPP) terms, adding an extra 5 trillion USD to global output at current values.
The firm stated that the main engines of the global economy – the US, emerging Asia and the Euro zone – are expected to contribute almost 70 percent of economic growth in 2018, compared to their post-2000 average of around 60 percent.
PwC said growth in the Euro zone is predicted to be above 2 percent in 2018, adding that it expects the peripheral economies to outpace the core for the fifth consecutive year.
Specifically, it stated that of the larger Euro zone economies, the Netherlands is expected to lead the way with economic growth at around 2.5 percent while uncertainty relating to Brexit is expected to drag on UK growth, which is predicted to be 1.4 percent in 2018.
With the fastest level of growth for several years, 2018 is predicted by PwC to be the most energy hungry on record too.
Almost 600 quadrillion British Thermal Units of energy could be consumed by the global economy in 2018, the highest level on record and double that of 1980, the firm stated, adding that India and China alone are expected to consume 30 percent of global energy.
Despite this, PwC’s outlook predicts oil prices are set to remain broadly stable in real terms, with OPEC and its allies extending its 1.8 million barrels per day supply cut until the end of next year.
The United Nations had in its world economic prospects report launched early last month stated that the world economy is expected to remain stable in 2018 and 2019, maintaining the growth rate of 3 percent in 2017.