6 June 2011: The recently launched 2011 edition of the the African Economic Outlook underlines the need for African economies to foster inclusive growth and to diversify their trade relationships.
The report, co-authored by the African Development Bank (AfDB), the Development Centre of the Organisation for Economic Co-operation and Development (OECD), the UN Development Programme (UNDP) and the UN Economic Commission for Africa (UNECA), provides economic forecasts for the African region for 2011 and 2012, as well as a country note on Zimbabwe and a special study on Africa and its emerging partners. The report was launched in Lisbon, Portugal, on 6 June 2011.
The report finds that African economies have overcome the global crisis relatively well and that they rebounded in 2010. High food and fuel prices are predicted to limit growth in 2011 to 3.7 percent, whereas growth for 2012 is predicted to reach 5.8 percent. Due to recent political events, North Africa is expected to grow at a slower pace than sub-Saharan Africa.
The report emphasizes that governments’ efforts need to include measures to create jobs, invest in basic social services, health and education, and promote gender equality. Growth must be broad-based and bring down high levels of inequality, it notes.
The report also shows that Africa is becoming more integrated into the world economy and that its partnerships are diversifying, offering new economic opportunities. Partnerships with emerging economies can provide additional know-how, technology and development experiences required to raise the standard of living for millions of people on the continent. According to the report, developing closer cross-border ties would enable African countries to boost sustainable and inclusive growth.
The report stresses that over-specialization in unprocessed raw materials, debt burden and good governance remain important challenges to address. It recommends that African countries enact development policies to promote different economic sectors and reduce reliance on commodities such as cash crops and minerals, to address these challenges. [African Economic Outlook Website] [UN Press Release] [OECD Press Release] [AfDB Press Release]