african_economy

Africa’s Economic Performance in 2012

Africa’s economy remained strong to register a 5.0 pct growth in 2012. The region’s economic growth was reported to be promising as it came amidst slowing world economy. Africa’s economic growth has benefited from the improving political unrest in the northern region of the continent, elections were hold and normal business activities have begun to return in Egypt and Libya.

The economic growth this year involves both the commodity rich and resource poor regions of the continent even though the earlier has seen a bit faster growth mainly due to increased oil production and high prices. Commodity production and exports remain to be essential for the growth although many African countries have tried to diversify their economies and sources of their growth.

The continent’s growth is also reported to have been benefited from an improved macroeconomic management and workable policies that called for high public investment mainly in infrastructure. Rising domestic consumption, investment demand encouraged by improving incomes and urbanization have contributed for more than half of the growth in 2012.

Private consumption was the key driver for Africa’s growth in 2012 followed by gross fixed investment and government consumption. Recovered exports in Northern Africa have also contributed to the growth.

Africa’s growth will remain strong in the years to come with a projected 4.8 pct and 5.1 pct in 2013 and 2014 respectively.

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