New World Bank report predicts Africa growth
The projections will make the region the third highest area for growth in the world behind South Asia and East Asia, the Global Economic Prospects for 2011 report says.
However, there remain concerns with three main areas: the huge rise in commodity prices which could herald further economic unrest, volatile capital flows and the problems created by tensions in European financial markets.
The World Bank says that the world economy is moving on from a “post-crisis bounce-back phase of recovery to slower but still solid growth” this year and next.
Global GDP, which expanded by 3.9 per cent in 2010, is expected to slow to 3.3 per cent in 2011, but most of the developing world has weathered the financial crisis well, and, by the end of 2010, many emerging market economies had recovered or were close to resuming the growth potential they had attained prior to the crisis.
“On the upside, strong developing-country domestic demand growth is leading the world economy, yet persistent financial sector problems in some high-income countries are still a threat to growth and require urgent policy actions,” said Justin Yifu Lin, the World Bank’s chief economist and senior vice president for development economics.
Developing country growth of 7 per cent in 2010, and 6 per cent in 2011 is projected, which is more than twice the rate projected for high-income countries.
Most low-income countries saw trade gains in 2010 and, overall, their GDP rose 5.3 per cent in 2010. This was supported by a pick-up in commodity prices, and to a lesser extent in remittances and tourism. (Africa Review)