19 March 2010
Lagos — Sub-Saharan African economies will rebound this year, growing by about 3.8 per cent, the World Bank said yesterday. The group also said the recovery would be slower than in other developing nations because of a reliance on commodities.
The bank expects economic expansion of 4.6 per cent in 2011. Africa is estimated to have grown by between 1.0 and 1.1 per cent in 2009, said Andrew Burns, the bank's manager of global macro economic trends.
"We expect the recovery to be a little more muted because the dip in growth was less pronounced (compared with other developing countries)," he told a news conference. Other developing countries will grow on average by 5.2 per cent in 2010 and 5.7 per cent in 2011, the World Bank estimates.
"Globally the crisis is over; we are through the acute phase.
"The post crisis rebound is starting to slow down and the growth impact of fiscal stimulus programmes will diminish in the course of this year," Burns said. He said the sub-Saharan African region would not feel the impact of recovery in other global economies because it is less export-oriented than other developing countries.
Much of the continent is dependent on commodities rather than manufacturing. "We don't see commodity prices rebounding to 2008 levels although they will remain high compared to 1990s and 2000s," said Burns.
The World Bank expects net private capital flows to developing countries to recover to between 3.5 and 4.0 per cent of gross domestic product in 2010. By 2011, Africa will recover by 4.0 and 5.0 per cent in GDP range, the bank added.
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