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10 January, 2008
ADDIS ABABA (AFP) - Africa will sustain an economic growth rate of 6.2 percent in 2008 despite an anticipated slowdown of the global economy, a United Nations report said Thursday.
The continent's steady economic performance, which saw growth rates reach 5.7 percent in 2006 and 5.8 percent in 2007, contrasts sharply to global figures, which are forecasted at just 3.4 percent down from 3.7 last year, said the report which was released in Addis Ababa.
"The impressive robust growth in Africa is attributed to largely buoyant domestic demand, booming mining and gas production and a recovery from a long period of economic decline in a number of countries, especially those that have come out of situations of war and civil strife," the report added.
Despite increasing oil prices proving to be concerns for oil-importing African countries, they were enjoying profits from high prices of different export commodities.
"African countries producing commodities such as cotton, copper, and other minerals have benefitted from high prices which have, to some extend, helped them balance their oil expenditures," said Leonce Ndikumana, Economic Affairs Officer for the UN Economic Commission for Africa (UNECA) during a press conference in Addis.
Nkikumana explained that growth in construction, manufacturing and services had also boosted overall economic activity in agriculture-dominated countries such as Burkina Faso, Ethiopia, Kenya and Tanzania.
South Africa and Nigeria, which both achieved smaller growth rates last year, improved this year with South Africa getting 4.8 percent through expansion of its construction and mining sector, and Nigeria achieving slight GDP growth from its rapidly expanding public investment, he added.
Speaking about the situation in Kenya, where post-election violences saw more than 600 people dead and cost the country's economy at least 15 million dollars, UNECA's chief of trade Stephen Karingi said the events were "just a blip" and likely to improve.
"We are not likely to see a continuation of the uncertainty in the country as we can witness from the partial recovery of the financial markets. The events provided a temporary shock, but were just a blip in the continuum of what will happen," he said.
The UN report follows similar reports from the World Bank and the International Monetary Fund which claimed that sub-Saharan Africa was enjoying its strongest economic growth and its lowest inflation in more than three decades.