IMF projects higher economic growth for Africa

The International Monetary Fund (IMF) has said most countries in Sub- Saharan Africa will achieve higher economic growth this year owing to sustained recovery from the global economic recession experienced last year. In its latest regional economic outlook report for the region that was released on Friday, the fund says economic output in the region will expand by 4 percent in 2010, compared to 2 percent in 2009. “Most countries in the region are now bouncing back from the growth slowdown or contraction in output experienced during the global recession … while lower than the 5–7 percent rates the region registered in the mid-2000s, this would still be quite high by historical standards.. ..,” the report reads in part. The fund estimates, Rwanda’s economy will grow by 5.4 percent this year from 4.1 percent registered last year. According to the Central bank’s monetary policy statement released earlier this year, during the year 2009, Rwandan economy was affected by an unfavourable international economic environment, exacerbated by the liquidity crunch experienced by the banking sector at the beginning of the year 2009. According to the Ministry of Finance, the 2009 real Gross Domestic Product (GDP) growth declined to 5.5 percent after a high growth of 11.2 percent recorded in 2008. While the continent was not shielded from the economic crisis, the impact was less due to expansionary macroeconomic policies adopted by most African countries in 2008 -09 and the relatively quick recovery in global economic activity. “Nearly two thirds of the countries experiencing a slowdown in 2009 were able to increase government spending to buttress economic activity. Policy interest rates were also reduced in most countries,” Antoinette Monsio Sayeh, the Director of IMF’s African Department commented in a press release about the report’s main findings. Ends