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African growth is project to be 2.8% this year


The annual AEO (African Economic Outlook) published with AFDB (African Development Bank), the OECD Development Center and the United Nations economic commission for Africa with help from the European Commission. report that Africa will slow to 2 percent this year. As a consequence of global recession and falling exports.

 

The head of macroeconomic analysis at UNECA, told AFP, Adam Elhiraika said “We have never had negative growth in the continent as a whole, but this year our two percent forecast is the same as recorded during the 'lostdecades' of the mid-1970s,1980s and mid-1990s”.The report showed that African exports went down as a result of lower demand and falling of commodity price. Also Elhiraika said that “In order to cut public spending and maintain fiscal stability, many countries will be forced to reduce spending on development projects and cut some services. This will threaten progress towards attaining the Millennium development Goals, and many people are likely to fall back into proverty.”.Kenya’s economic growth slowed to 3.5 percent in 2008 from 6.1 percent following post-election violence. Zimbabwe’s economy contracted 4.5 percent, while Eritrea’s grew by just 1 percent.


The annual AEO (African Economic Outlook) published with AFDB (African Development Bank), the OECD Development Center and the United Nations economic commission for Africa with help from the European Commission. report that Africa will slow to 2 percent this year. As a consequence of global recession and falling exports.

 

The head of macroeconomic analysis at UNECA, told AFP, Adam Elhiraika said “We have never had negative growth in the continent as a whole, but this year our two percent forecast is the same as recorded during the 'lostdecades' of the mid-1970s,1980s and mid-1990s”.The report showed that African exports went down as a result of lower demand and falling of commodity price. Also Elhiraika said that “In order to cut public spending and maintain fiscal stability, many countries will be forced to reduce spending on development projects and cut some services. This will threaten progress towards attaining the Millennium development Goals, and many people are likely to fall back into proverty.”.Kenya’s economic growth slowed to 3.5 percent in 2008 from 6.1 percent following post-election violence. Zimbabwe’s economy contracted 4.5 percent, while Eritrea’s grew by just 1 percent.


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