Africa's GDP will grow only 2.8 percent – AEO

The data of the African Economic Outlook (AEO) for 2009, presented yesterday in Paris (France), are showing that the global economic crisis is affecting Africa as well.

In fact Africa’s GDP in 2009 is expected to be 2.8% instead of the previously expected 5.7% before the crisis.

As written on OECD.org: “The AEO’s authors anticipate growth rebounding to 4.5 per cent in 2010. Growth in oil-exporting countries is expected to fall to 2.4 per cent in 2009 compared to 3.3 per cent for the net oil importers.

The collapse of commodity prices and plummeting demand from OECD countries will have an adverse effect on Africa’s budget balances, with the regional budget deficit for 2009 predicted to be around 5.5 per cent of GDP compared to a surplus of 3.4 predicted in the AEO one year ago. Foreign direct investment decreased by about 10 per cent in 2008″.

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