AFRICAN ECONOMIC OUTLOOK - PowerPoint PPT Presentation

1 / 29
About This Presentation
Title:

AFRICAN ECONOMIC OUTLOOK

Description:

Title: AFRICAN ECONOMIC OUTLOOK Author: Jean-Claude Berth lemy Last modified by: bogusz_a Created Date: 1/28/2002 5:46:03 PM Document presentation format – PowerPoint PPT presentation

Number of Views:114
Avg rating:3.0/5.0
Slides: 30
Provided by: JeanClau83
Learn more at: https://www.oecd.org
Category:

less

Transcript and Presenter's Notes

Title: AFRICAN ECONOMIC OUTLOOK


1

African Economic Outlook 2004/2005
African Development Bank / OECD Development Centre
2
Outline of Presentation
  • The African Economic Outlook (AEO) Project
  • Highlights of the 2004/2005 Report
  • Major Development Challenges facing African
    Countries

3
The AEO Project...
  • Joint Publication of the ADB and the OECD
    Development Centre
  • Objective Independent analysis of African
    countries using a common methodology and targeted
    at a broad audience
  • Core work Analysis of individual countries,
    overall review of African economy, and focus on a
    major theme each year SMEs in 2004/05
  • Improvements in successive editions
  • More intensive peer-review process
  • Improved modelling and data harmonisation
  • Broader Coverage

4
Coverage 2004/2005 29 African countries
89 of GDP, 86 of population
5
Highlights of 2004/2005 AEO
6
Africa had the best GDP growth rate in eight
years ...
7
Excluding N. Africa and S. Africa, GDP Growth
Rate was even better ...
8
Considerable regional variations were observed
9
Newer oil producers are growing most rapidly
2004 (e) 2005 (p)
Angola 10,9 14,7
Chad 31,3 10,8
Congo 4,0 9,4
Equatorial Guinea 59,8 -4,7
Real GDP growth rates, expected (e) and forecast
(p). (Source AEO).
10
But reforming oil-importers are also doing quite
well

2004 (e) 2005 (p)
Ghana 5.8 5.9
Senegal 6.0 6.3
Mozambique 7.8 7.7
Tanzania 6.4 7.0
Uganda 5.9 5.4
Real GDP growth rates, expected (e) and forecast (p). (Source AEO). Real GDP growth rates, expected (e) and forecast (p). (Source AEO). Real GDP growth rates, expected (e) and forecast (p). (Source AEO).
11
Factors Behind Improved Growth Performance
  • External Factors
  • Internal Factors

12
OECD recovery has spurred African economies
Rates of real GDP growth (Sources AEO, IMF,
OECD).
13
Rising oil and metals prices
14
Africa is also benefiting from increased aid
flows...
DAC Members ODA 1990-2003 and simulations to
2006 and 2010, based on Monterrey and subsequent
commitments
15
Decline in Debt / GDP ratio, although still high
for poor countries
16
Internally, political stability is improving
17
Macroeconomic management is improving Inflation
is largely under control ...
18
Significant variations in regional inflation
rates
19
Fiscal discipline is also generally good and
improving
20
Regional variations in fiscal balance
21
Despite recent improvements, major development
challenges remain
  • Meeting the Millennium Development Goals (MDGs)
    remains a major challenge for most African
    countries
  • African economies remain highly vulnerable to
    both external and domestic shocks

22
Meeting the MDGs remains a challenge
23
Further Reforms Required to Make Progress towards
the MDGs
  • Maintain stable macroeconomic framework by
    building on recent gains prudent use of
    windfall gains is essential
  • Push through structural reforms and improve the
    investment climate
  • Privatization of SOEs
  • Governance reforms and institution
    building/strengthening
  • Financial sector reforms

24
Greater effort at diversification has to be made
Libya 1,17
Angola 1,19
Equatorial Guinea 1,23
Nigeria 1,26
Congo 1,52
Guinea Bissau 1,61
Chad 1,65
Burundi 1,66
Gabon 1,70
Sudan 1,71
Congo Democratic Republic 1,78
Africa 7,73
Export Diversification Index (inverse of sum of
squared shares of each exported good lower
numbers less diversified Source AEO).
25
Regional cooperation and integration efforts need
to be strengthened
  • Take advantage of the NEPAD initiative
  • Streamline regional economic groupings
  • Greater focus on promoting investment in addition
    to trade
  • Greater effort to remove bureaucratic and other
    barriers that still hinder trade and investment

26
More efficient use of resources for human capital
development
  • Africa would also need to build its human capital
    to compete globally
  • More countries are increasing their investments
    in education and health
  • Improving service delivery is now a major
    challenge for most

27
External Support will remain critical
  • ODA -- Commission for Africa recommendation of
    doubling ODA to Africa by 2010 -- 25
    billion/year
  • Debt Relief UK proposal -- 100 percent debt
    relief on debt owed to the IFIs
  • Trade Doha Round
  • Dismantling of remaining trade barriers removal
    of agricultural subsidies
  • Developing Africas Capacity to trade

28
Conclusion
  • Africa doing better due to favorable external
    environment but, as importantly, due to internal
    factors
  • Prospects for sustained improvement are good
  • African countries would need to deepen their
    reforms and carry out remaining structural
    reforms
  • Africas development partners should scale up
    their support in line with commitments

29
Thank you!
Write a Comment
User Comments (0)
About PowerShow.com