Africa to grow 6% - IMF
Apr 15, 2008
AFRICA’S economic growth is to expand by 6.5% in 2008 fuelled by a surge in oil exports, but the global economy slowdown pauses a risk, the International Monetary Fund (IMF) has said.
By Sylvia Juuko
AFRICA’S economic growth is to expand by 6.5% in 2008 fuelled by a surge in oil exports, but the global economy slowdown pauses a risk, the International Monetary Fund (IMF) has said.
“The immediate prospects are for continued economic expansion but with a widening gap between oil exporters and oil importers,†the IMF said in its 2008 regional economic outlook.
The IMF noted that coupled with higher food and energy prices, inflation is poised to increase to 8.5%.
“The global economy is slowing down. Oil prices have risen to record levels and global financial markets are unsettled. This marks a shift from recent years when demand for sub-Saharan African exports was healthy and non-fuel commodity prices were growing at double digits.â€
It noted that while African markets had shown limited reaction to global financial markets turbulence, a reversal of portfolio flows could reduce external financing and hurt growth.
“In light of these risks there is about one in five chance in 2008 that growth in sub-Saharan Africa will fall to less than 5%.â€
AFRICA’S economic growth is to expand by 6.5% in 2008 fuelled by a surge in oil exports, but the global economy slowdown pauses a risk, the International Monetary Fund (IMF) has said.
“The immediate prospects are for continued economic expansion but with a widening gap between oil exporters and oil importers,†the IMF said in its 2008 regional economic outlook.
The IMF noted that coupled with higher food and energy prices, inflation is poised to increase to 8.5%.
“The global economy is slowing down. Oil prices have risen to record levels and global financial markets are unsettled. This marks a shift from recent years when demand for sub-Saharan African exports was healthy and non-fuel commodity prices were growing at double digits.â€
It noted that while African markets had shown limited reaction to global financial markets turbulence, a reversal of portfolio flows could reduce external financing and hurt growth.
“In light of these risks there is about one in five chance in 2008 that growth in sub-Saharan Africa will fall to less than 5%.â€