Good policies, remittances to drive Africa’s economic growth to 4.5% in 2012 – Report

Africa’s economic growth will reach 4.5% in 2012, the African Economic Outlook (AEO) 2012 projected May 28, 2012 on the back of migrant remittances, good economic policies and natural resources exports.

The continent’s economy will further accelerate to 4.8% in 2013, according to the AEO jointly published by the African Development Bank (AfDB), the Organisation for Economic Co-operation and Development (OECD), the United Nations Development Programme (UNDP) and the UN Economic Commission for Africa (ECA).

“The economic outlook for Africa remains optimistic. Natural resource-rich economies are expected to do better than more mature emerging economies,” it said.

The report attributes Africa’s growth to natural resources exports, migrant remittances and good economic policies maintained by some of the continent’s countries, aided by good weather and relative stability in the international market.

Africa recorded an economic growth of 3.4% in 2011, with North Africa recording 0.5% growth compared to sub-Saharan Africa’s over 5% growth, the report stated.

Despite the poised outlook, the report however, warned that the crisis in Europe which is Africa’s premier economic and trading partner could undermine demand for exports.

“The continued economic crisis in the euro area may reduce demand for African exports, while lowering external resource inflows,” it said.

Meanwhile the AfDB’s President, Donald Kaberuka, commended African countries for maintaining growth, but urged caution, given the uncertain external environment.

“I appeal for caution and not to show excessive optimism with regard to the continent’s economic growth, because there are other issues that need to be considered carefully,” Kaberuka said at the report’s launching ceremony in Tanzania.

By Ekow Quandzie