Africa's sub-Saharan economies at 30-year high: IMF
Wednesday, 7 November 2007
PRETORIA, Nov 6 (AFP): Africa's sub-Sahara region is enjoying its strongest economic growth and its lowest inflation in more than three decades, the International Monetary Fund said yesterday.
"Recent economic performance shows that sub-Sahara Africa is experiencing its strongest growth and lowest inflation in over 30 years," IMF's senior representative in Africa Sean Nolan said during a presentation in Pretoria.
"There is also a positive outlook for 2008 with GDP (gross domestic product) growth expected to accelerate and inflation to decline further.
"The region looks well-poised to sustain its growth momentum," he added.
While the overall economic performance outlook excludes Zimbabwe, where the annual rate of inflation is nearly 8,000 per cent, "for obvious mathematical reasons" the "robust expansion cuts across countries." Nolan said growth in the region, which includes 44 countries, "should reach six per cent in 2007 and over 6.5 per cent in 2008" with oil-exporting countries such as Nigeria and Angola boosting the figures.
"The economic expansion is strongest in oil exporters but can cut across all country groups. On the external front, it reflects strong demand for commodities, increased capital inflows, and debt relief.
He said inflation should average 7.5 per cent by the end of 2007, "with inflation in 32 out of 44 countries in single digits", and fall by about a percentage point in 2008. A decline in armed conflict across the continent was one of the factors that had increased confidence, he added.
But recent turbulence on the global financial markets, rising oil prices and political instability still posed risks. "To keep the momentum sustained, the region should among others, consolidate stabilisation and reduce vulnerabilities, enhance investment climate, and expand trade and markets.
"In other countries, reform is already bearing fruits," he added.
The IMF's deputy director of research, Charles Collyns, said that although the outlook for the world's poorest continent was generally positive, it should be kept in perspective.
"Recent economic performance shows that sub-Sahara Africa is experiencing its strongest growth and lowest inflation in over 30 years," IMF's senior representative in Africa Sean Nolan said during a presentation in Pretoria.
"There is also a positive outlook for 2008 with GDP (gross domestic product) growth expected to accelerate and inflation to decline further.
"The region looks well-poised to sustain its growth momentum," he added.
While the overall economic performance outlook excludes Zimbabwe, where the annual rate of inflation is nearly 8,000 per cent, "for obvious mathematical reasons" the "robust expansion cuts across countries." Nolan said growth in the region, which includes 44 countries, "should reach six per cent in 2007 and over 6.5 per cent in 2008" with oil-exporting countries such as Nigeria and Angola boosting the figures.
"The economic expansion is strongest in oil exporters but can cut across all country groups. On the external front, it reflects strong demand for commodities, increased capital inflows, and debt relief.
He said inflation should average 7.5 per cent by the end of 2007, "with inflation in 32 out of 44 countries in single digits", and fall by about a percentage point in 2008. A decline in armed conflict across the continent was one of the factors that had increased confidence, he added.
But recent turbulence on the global financial markets, rising oil prices and political instability still posed risks. "To keep the momentum sustained, the region should among others, consolidate stabilisation and reduce vulnerabilities, enhance investment climate, and expand trade and markets.
"In other countries, reform is already bearing fruits," he added.
The IMF's deputy director of research, Charles Collyns, said that although the outlook for the world's poorest continent was generally positive, it should be kept in perspective.