African economies are expected to record an average 4.5 percent growth this year despite a slowdown in the global economy, the United Nations economic annual report says.
Somalilandsun – According to the World Economic Situation and Prospects 2013 (WESP) released on Monday most African countries will post much stronger growth than the global average.Last year Africa’s economic growth excluding Libya stood at 3.4 per cent.
The positive growth is expected to continue in 2014 reaching five percent.
Africa registered a sharp increase in growth in 2012 (including Libya) after a more pronounced slowdown the previous year. The slowdown was caused by the political upheavals in North Africa and Western Asia, where growth decreased markedly.
Weaker performance of oil-importing countries in the sub region was blamed for the slowdown.
The report noted that trade and investment ties in Africa were increasing and this will mitigate against the recession in Europe.
According to the report developing economies will register a moderate economic growth of up to 5.1 per cent in 2013 and 5.6 per cent in 2014.
New oil discoveries in Kenya, Ghana, Sierra Leone and Uganda will play a major role in the economic growth of the continent, the report added.
“The new oil discoveries are both a blessing and a curse for Africa,” the report says.
“As a blessing it will help countries grow and as a curse it might be a means of conflict.”
It described the newly found oil in Ghana as high quality.