West African countries said to record improved economies in 2010

Countries in the West African sub-region have recorded improved economic outcomes during 2010, the governor of the Bank of Ghana has said.

Mr. Kwesi Amissah-Arthur told journalists in Accra Friday February 18, 2011 that global economic conditions showed a rebound as economic activities in emerging and developing economies remained strong and continued to drive world growth.

He said in the United States, growth appears to be more solid as a result of the policy of Quantitative Easing. In the Euro area, however he said prospects for recovery are being hindered by the sovereign debt crisis and tight fiscal and financial conditions.

In the countries of the West African Monetary Zone (WAMZ), he said economic performance remained robust and output turn out stronger at 7.2% in 2010 compared to 4.5% recorded for the whole of Africa.

Mr. Amissah-Arthur said inflation pressure dampened and was projected at 11.3% at the end of 2010, down from 12.3% at the end of 2009.

“With proper coordination of domestic policies and external sector stability, medium term prospects for growth remain positive across the sub-region,” he said.

Meanwhile, a report released February 15, 2011 by the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group says that sub-Saharan Africa is becoming an increasingly popular investment destination.

According to MIGA, a survey conducted for the report, World Investment and Political Risk, indicates that two-thirds of the multinational executives responding to the survey expect to increase foreign direct investment (FDI) in the region over the next three years.

“This expected upsurge in FDI into Sub-Saharan Africa is very welcome news, especially given the region’s investment needs,” MIGA Executive Vice President Izumi Kobayashi was quoted as saying.

“We know that FDI flows directed to productive assets can spur substantial economic growth and reduce poverty,” he added.

By Emmanuel K. Dogbevi