Strong recovery predicted for sub-Saharan Africa
Sub-Saharan Africa will head towards a strong economic recovery in 2010 and 2011, a new study has claimed.The International Monetary Fund (IMF) World Economic Outlook report, which is published twice a year, forecasted growth of 4.7 per cent this year and 5.9 per cent in the following 12-month period. According to the organisation, the region escaped the global recession in 2009, achieving 2.1 per cent expansion during this time, largely due to its independence from heavily affected economies on the worldwide scene.
Countries in sub-Saharan Africa also gained from higher commodity prices, resurgent trade conditions and increased government spending initiatives throughout the downturn, the institution explained. "Growth in a number of the more fragile economies even accelerated last year, reflecting mainly stronger policies and reconstruction assistance," the Associated Free Press quoted the IMF as stating.
However, it is important these nations look to long-term solutions for encouraging investment, it added, including bolstering governance and boosting spending on essential infrastructure.