AfDB: Championing inclusive growth across Africa. A blog by the former Chief Economist and Vice-President
For the past decade, Africa has had strong growth. A new economic momentum has been created. The continent weathered the financial crisis and has bounced back. But headline economic growth is not enough. Deliberate policies to reduce inequalities and promote inclusion are now needed more than ever before. It is time to focus on what people want: decent work, a living wage, access to basic service, more democracy and accountable governments. Africa and its people aim to be a pole of growth in the decades ahead. Read more
African economies have been growing at an average GDP rate of more than five per cent annually since 2004, and many are expected to attain middle to high income level by 2060. However, this vision cannot be achieved without a sound, developed and competitive financial sector. Notably, a well-functioning financial system will be a critical prerequisite to achieve sustained and inclusive growth.
The slowdown in the euro zone economy in 2011 is expected to deepen in 2012, with recent evidence indicating that the debt ridden single currency bloc is in a «mild recession”. Historical evidence shows that recessions tend to bring about protectionist policy measures as a means to cushion against the impact of external shocks.
Since the beginning of 2011, currency depreciation has occurred in South Africa, and the Rand monetary area, comprising Lesotho, Namibia and Swaziland, and also in Botswana (Figure 1). Mozambique is the exception where, in fact, the currency has appreciated by about 20 per cent to date.