AfDB says Africa’s Growth Marked by Wide Variations

Africa has been resilient to regional and global headwinds, the African Development Bank noted in its African Economic Outlook (AEO) report.  In comparison to global trends, Africa grew by about four per cent on average in 2013, while the global economy grew by three percent.

The AEO report which is a collaborative premier flagship publication by the African Development Bank, Organization for Economic Co-operation and Development and the United Nations Development Program noted that the continent was buoyed by robustness of its critical indices.

The report stated, “Sub-Saharan Africa performed better posting five per cent growth in 2013 and projected to reach 5.8 percent in 2014.”  It also went on to say, “East and West Africa recorded the fastest growth, above six percent, while the low-income countries also recorded growth of above 6 percent, compared to the below 3 percent growth recorded by the upper-middle-income countries in North and Southern Africa.”

The report noted that the continent’s growth prospects have improved partly due to social stability.  In it, the report went on, “Africa’s medium-term growth prospects have improved, on the back of broader political and social stability at home and recovering economic conditions abroad. In some countries and regions, growth is projected to return to levels last seen before the onset of the 2009 global recession.”

Foreign direct inflows are also reported to be on the rise and expected to surpass 200 billion US dollars in 2014, four times their 2000 level.  However, the report underscored the risks and challenges arising from social exclusion, income inequality, and vulnerability to economic, social and environmental risks as they continue to threaten Africa’s long-term aspiration for a people-centred and prosperous continent.

The AEO report noted that though the continent still had countries in conflicts, the situation had abated.  The report concluded, “Today, most of Africa is at peace and moving forward. Between 2014 and 2015, 600 million Africans, including many first-time voters, will elect their leaders.”

Source: CNBC Africa