Robust growth expected in continent
SHANGHAI: Economic growth in Africa is expected to reach 6 percent this year, a change from last year's 5.5 percent that is credited to macroeconomic stability, a favorable global environment and good weather, according to a report released yesterday.
Strong external demand for oil and non-oil minerals, growing investment and significant increases in development assistance to Africa have also contributed to the positive economic outlook for the continent this year, according to the African Economic Outlook 2006/2007.
It was jointly prepared and published by the African Development Bank and the Paris-based Organization for Economic Cooperation and Development (OECD).
"The general outlook is positive, with macroeconomic management improving, inflation under control and only showing moderate rise," said Louis Kasekende, chief economist of the African Development Bank.
"Political stability is also improving to support economic activities and the external balances are quite stable," the economist added.
Africa's four largest economies - South Africa, Algeria, Nigeria and Egypt - which account for half of the continent's gross domestic product (GDP) and nearly one-third of its population, averaged 5.1 percent growth rate.
The growth rates in the remaining African countries in 2006 were even higher, with an average of 6 percent, the report said.
South Africa, Africa's largest economy, witnessed a 5 percent growth last year, the fastest one since the end of Apartheid.
Its economy, the report said, is expected to remain robust at about 4.5 percent in both 2007 and 2008.
The report, which covers 31 African countries that account for 86 percent of the continent's population and 91 percent of its economic output, also noted that net oil-exporting economies outperformed others by a substantial margin in 2006.
By region, the average economic growth rate for Southern Africa is projected to increase from 5.4 percent in 2006 to 6.1 percent in 2007, while the growth rate in West Africa is projected to accelerate from 4.8 percent in 2006 to 5.9 percent in 2007.
Real GDP growth in North African countries is expected to remain high at 6 percent in both 2007 and 2008 on account of the exceptionally high growth rates estimated for Mauritania and Sudan, mainly due to increases in oil and gas production by the two, the report said.
The average economic growth in Central Africa is expected to increase from 3.9 percent in 2006 to 5.2 percent in 2007 and further accelerate to 6.3 percent in 2008.
The economic growth in East Africa averaged 5.1 percent in 2006 and is projected to speed up to 5.8 and 6 percent in 2007 and 2008, respectively, the report said.
But there are some existing and emerging challenges that Africa needs to address in order to sustain the dynamic growth it achieved in the last few years, the report warned, citing increasing imbalances in the global economy.
"Further reforms and policy actions are still needed," Kasekende said.
(China Daily 05/14/2007 page13)
