Global financial crisis dims Africa's economic outlook.

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) July 14, 2009 -- The global financial crisis has adversely affected Africa's economy in many ways with demand for African exports falling, investment inflow deterring and government revenues sharply decreasing. As prospects for African economies have deteriorated, many African countries, fortunately, have improved macroeconomic management through reforms over the past few years which have helped them beat the crisis.

In the Regional Economic Outlook: Sub-Saharan Africa released by the International Monetary Fund (IMF) this April, Sub-Saharan African growth is projected at 1.5 percent in 2009 before recovering to just under 4 percent in the next year. These projections imply a sharp slowdown in growth compared to 2008 and a significant downward revision from the predictions in October.
The report titled African Economic Outlook (AEO) released in May said Africa can look forward to only 2.8 percent in 2009, less than half of the 5.7 percent expected before the crisis.
The report, jointly published by the African Development Bank (AfDB), the Organisation for Economic Co-operation and Development(OECD) and the United Nations Economic Commission for Africa (ECA),expects growth in oil-exporting countries in Africa to fall to 2.4percent this year compared to 3.3 percent for the net oil importers.

According to the report jointly published by the ECA and the African Union in May, Africa's economic growth rate will be expected to slow down to 2 percent, much lower than the levels of 5.1 percent in 2008 and 6 percent in 2007.
The impact of the global financial crisis and economic recession has already resulted in lower demand for Africa's export and a sharp decline in commodity prices, said the report.
As for the individual countries, the situation is no better. Official data showed South Africa's economy, the continent's biggest, contracted an annualized 6.4 percent in the first quarter, the biggest decline in almost 25 years.
The world bank has said South Africa's economy will probably contract 1.5 percent in 2009, the first drop in 17 years.

With lower oil output and weaker global energy prices, federal government revenues of Nigeria, Africa's primary oil producer, declined 32 percent below target in the first three months of 2009.
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