Tuesday, July 06, 2010

Another good report on Africa's economy

Another new report gives us good news about the African economy. The African Development Bank says that economic growth on the continent will return to pre-global recession levels. The ADB says that market reforms and strong economic ties to China is helping the continent grow even during the recession.

From this Associated Press article that we found at KAAL, we read more about the good news.

Mthuli Ncube, presenting the annual economic forecast of the multilateral bank dedicated to alleviating poverty and boosting growth in Africa, predicted a 4.5 percent growth rate for the continent’s economies this year. The bank looks ahead to more than 5 percent growth next year, and soon back to the average of about 6 percent Africa enjoyed between 2006 and 2008. Growth was just 2.5 percent last year.

But Ncube says recovery could be threatened if Europe _ to which many African economies are closely linked _ fails to bounce back. Other threats include the possibility of political or social tension and problems created by years of poor investment in infrastructure.

Ncube’s assessment is one of several to take note of how a continent usually associated with poverty and economic collapse has weathered the international crisis.

A report last month from the consulting firm McKinsey & Company concluded that "global business cannot afford to ignore the potential" of Africa, and lauded its governments for acting in recent years "to end political conflicts, improve macroeconomic conditions and create better business climates."

A recent World Bank assessment also concluded Africa was rebounding from the global crisis, and poverty was slowly decreasing after "a decade of improvements in governance, favorable commodity prices, better macroeconomic policies, higher investments in human development, health care and education."

The optimism about Africa comes amid concerns recovery is still fragile in Europe and the United States.

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