Economic Report on Africa 2004: unlocking Africa's trade potential

Abstract

In 2003, Africa was the second fastest-growing developing region, with a growth rate of 3.8 %. Higher oil prices and production, rising commodity prices, increased foreign direct investment (FDI), backed up by improved weather conditions underpinned this encouraging growth. Yet, only 5 countries achieved the 7% or higher growth rate required to reach the Millennium Development Goal of halving poverty by 2015; 40 registered positive but below 7% growth rates, while 7 registered negative growth rates. African countries continued to exhibit good macro-economic fundamentals by keeping fiscal deficits under control, despite the challenge to increase spending to meet poverty reduction goals. FDI inflows to Africa increased by 27%, compared to the previous year. though still largely concentrated in the natural resources sector, the service sector is continuing to become more attractive to foreign investors. The regional outlook for 2004 is positive, with growth projected to accelerate to...