Economic Report on Africa 2007: Accelerating Africa's Development Through DiversificationThis publication is the 8th in an annual series that reviews the continent's economic performance and near-term prospects. This report examines the recent trends and prospects. African economies continue to sustain the growth momentum of previous years, recording an overall real GDP growth rate of 5.7 per cent in 2006 compared to 5.3 per cent in 2005 and 5.2 per cent in 2004. As many as 28 countries recorded improvements in growth in 2006, relative to 2005. Only Zimbabwe recorded a negative growth rate in 2006. Africa's growth performance in 2006, as in previous years, was underpinned by improvement in macroeconomic management in many countries, and strong global demand for key African export commodities, sustaining high export prices, especially for crude oil, metals and minerals. But the growth rates still fall short of the levels required to achieve the Millennium Development Goals by 2015. The continent faces the challenge of both accelerating growth and sustaining growth rates over an extended period. African countries need to sustain reforms to macroeconomic stability and improve the domestic investment climate to promote private sector activity. They also need to design strategies for diversification of their product and export base as a means of increasing growth and sustaining the growth momentum. The second part of the report looks at diversification trends, and suggests policies for achieving diversification. |
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achieve activities African countries African economies Agreement agriculture Asia average Bank billion capacity capital cent challenges China commitments commodities compared continue contribution debt debt relief decline deepening deficit demand developing countries discussed diversification domestic East economic growth effects efforts Egypt especially exchange rate expected experience exports external factors Figure finance fiscal flows gains global Goal growth rates higher HIV/AIDS impact important improved income increase Indicator industrial inflation institutions integration investment issues Kenya lead less macroeconomic major markets MDGs ment negotiations North oil prices performance period policies positive poverty progress recent reduce regime region remains Report savings sector share significant social Source South Africa stability strategies subregions sustained Table tariff tion trade trend Tunisia UNECA United Nations