LAST_UPDATEThu, 19 Jul 2018 11pm

Ethiopia Among Few Economies Seen Growing Faster Than China In PPP Terms In 2018, Says PwC

ADDIS ABABA -- Ethiopia is among just 17 economies which is projected to grow faster than China in Purchasing Power Parity (PPP) terms this year, according to projections in the Global Economy Watch published by international professional services firm PriceWaterHouseCoopers (PwC).

The other countries include India, Ghana, and the Philippines, media reports here said Tuesday, quoting the report. The PwC analysis added that eight of the ten fastest growing countries in 2018 could be in Africa.

According to PwC, China, the world’s largest economy in PPP terms, could grow by 6 to 7 per cent in 2018, slower than previously, but in line with expectations.

The global economy is set to grow by almost 4.0 per cent this year in PPP terms, adding an extra 5 trillion USD to global output at current values. The main engines of the global economy -- the United States, emerging Asia and the Euro zone -- are expected to contribute almost 70 per cent of economic growth in 2018, compared with their post-2000 average of around 60 per cent.

PwC said growth in the Euro zone is predicted to be above 2.0 per cent 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 per cent while uncertainty relating to Brexit is expected to drag on British growth, which is predicted to be 1.4 per cent 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 (BTUs) 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 per cent 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 3.0 per cent in 2017.