World Bank says Africa has recovered from crisis, projects steady global growth
The world economy is moving from a post-crisis bounce-back phase of the recovery to slower but still solid growth this year and next, with developing countries contributing almost half of global growth, saysthe World Bank’s latest Global Economic Prospects 2011. The World Bank estimates that global GDP, which expanded by 3.9% in 2010, will slow to 3.3% in 2011,before it reaches 3.6% in2012. Developing countries are expected to grow 7% in2010, 6% in 2011 and 6.1%in 2012. They will continue to outstrip growth inhigh-income countries, which is projected at 2.8% in 2010, 2.4% in 2011 and 2.7%in 2012.
For the developing countries of Middle East and North Africa, a modest upturn in growth in 2010 reflected both an improved external environment and the ongoing effects of earlier stimulus programs. Higher oil prices in the year benefited developing oil exporters, while rebound in parts of the Euro Area- and growth in high-income Gulf Cooperation Council (GCC) countries helped to support a revival in exports, remittances and tourism. After an advance of 3.3% in 2010,the region is expected to enjoy stronger gains of 4.3% and 4.4% in 2011 and 2012 respectively, as domestic demand growth continues, export markets firm, and oil prices remain at high levels.
Outputin Sub-Saharan Africa expanded by an estimated 4.7% in 2010, a strong rebound following a 1.7% growth rate in 2009. In South Africa, the region‘s largest economy, growth at an estimated 2.7% in 2010 was curtailed by declining private investment, rand appreciation and labor strikes. South African growth is projected to pickup to 3.5% and 4.1% in 2011 and 2012 respectively, as global conditions improve further. The rest of the region, excluding South Africa has actually fared better. GDP for these countries expanded an estimated 5.8% in2010 and is projected to grow 6.4% in 2011 and 6.2% in 2012. The rebound was strongest among the metal and mineral exporters, and oil exporters, which have benefited from stronger commodity prices.
This article was originally posted on Sustainable Development Africa Platform
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