African growth projected stronger in 2007

• Pages: 286

Page 286

Growth in real GDP in sub-Saharan Africa is projected to slow to 4.8 percent in 2006 from 5.6 percent in 2005, but to pick up to almost 6.0 percent the following year, according to the IMF's economic outlook for the region, released in Singapore on September 16. The brief slowdown is largely the result of a temporary fall in oil production in oil-exporting countries like Equatorial Guinea, Chad, and Nigeria and a moderation of growth in South Africa to more sustainable levels (see table). Inflation (excluding in Zimbabwe) is projected to drop to 6.9 percent in 2006 from 8.2 percent the previous year, particularly because of the fall in inflation in oil-producing countries (see chart).

Growth in oil-importing countries as a whole is expected to decline to 4.5 percent from 5 percent in 2005, though 17 of these countries-about the same number as in 2005-are expected to experience growth of 5 percent or more. In many oil-importing countries, the impact of persistently high petroleum prices has been mitigated by rising export prices for nonfuel commodities. "This growth performance demonstrates the growing robustness of economic growth in sub- Saharan Africa," Abdoulaye Bio-Tchané, Director of the IMF's African Department, told reporters.

He stressed, however, that there were several...