U.N.: Africa Economy Up 4.3 Percent ADDIS ABABA, Ethiopia –– Africa's economy grew by 4.3 percent last year, fueled by strong agricultural production, higher than expected exports and the end of conflicts in a handful of countries, a United Nations commission said in a report released Tuesday. The growth comes despite a global economic slowdown after the Sept. 11 attacks on New York and Washington, which were expected to lower commodity prices and reduce the amount of foreign investment in Africa, said the U.N. Economic Commission for Africa in its annual report. But, the global slowdown had "a much less pronounced impact" on Africa, the commission said. Output remained relatively strong and Africa's overall economic growth increased from 3.5 percent in 2000, the report said. "Africa grew faster than any other developing region in 2001, reflecting better macro-economic management, strong agricultural production, higher than expected exports to the U.S. and the cessation of conflicts in several countries," the report said. The economic performance of seven countries was surveyed in the report. The commission cautioned that despite the continent's overall economic growth last year, economic performance varied wildly in parts of Africa, with Equatorial Guinea's economy growing 65 percent while Zimbabwe's economy shrank by 7.5 percent. However, the number of African countries with economic growth exceeding 3 percent jumped from 26 in 2000 to 37 in 2001. This has positive implications for lowering poverty. But, economic growth remains fragile throughout most parts of Africa and, at current rates, African countries will not achieve the U.N. Millennium Summit goal of halving poverty by 2015, the report said. In southern Africa, Zimbabwe's political instability contributed to a deteriorating economic situation with 75 percent of the population living in poverty as unemployment and inflation continue to rise, the report said. In contrast, neighboring South Africa's "macro-economic fundamentals were robust in 2001," – a situation marked by low external borrowing and sound financial sector oversight, the report said. In eastern Africa, Ethiopia has managed economic reforms well, the report said. Neighboring Kenya, however, is mired in pre-election uncertainty and locked out of multilateral lending since 2000 because of corruption concerns. The West Africa nation of Guinea has made "tremendous progress" in moving from a command to a market economy, liberalizing exchange rates, deregulating prices and interest rates and restructuring its financial sector, the report said. |