Africa’s economy won’t hit 6% growth in 2013-14 – Report

Africa’s economic expansion will not reach the average 6% it recorded three years before the 2009 global recession, according to the 2013 African Economic Outlook (AEO) published May 27, 2013.

The continent’s growth is projected to hit 4.8% this year and 5.3% in 2014, said the report released by the African Development Bank (AfDB) on the sidelines of its 2013 Annual Meetings in Marrakech, Morocco.

“With projected growth of 4.8% in 2013 and 5.3% in 2014, Africa’s growth performance would continue to remain below average growth of around 6% in the three years preceding the 2009 global recession,” the AEO noted.

In 2012, Africa’s growth was higher at 6.6%, according to the report.

However, the report indicated that the continent’s 2013-2014 projected growth is “slightly higher than the estimated current underlying trend growth of 4.5% but still lower than the 7% growth rate, which is widely regarded as sufficient to reduce poverty.”

With annual population growth of more than 2%, reducing poverty would require sustainable per capita growth of almost 5%, it added.

The AEO projected average growth of per capita income for 2013 and 2014 will be less than 3%. However, it adds that “the relationship between economic growth and poverty is complex and the quality of growth and income distribution is equally important.”

Despite some improvements in living conditions in some African countries, the AfDB report says poverty has often remained high as benefits of high growth have not trickled down to the whole population adding “…growth has not been inclusive”.

By Ekow Quandzie in Marrakech, Morocco