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Africa Economic Brief - The Impact of the 2010-11 Surge in Food Prices on African Countries in Fragile Situations
Africa’s growth outlook remains optimistic after the strong economic rebound from the global financial crisis. The region experienced an increase in annual GDP growth to 4.8% in 2010 from 3.1% in the previous year and is expected to average over 5% in 2011. The soaring global demand for commodities is arguably a key driver of the enhanced GDP growth during 2010. Prices for oil, minerals, grain and other raw materials continue to rise. In February 2011, the IMF commodity index increased by 4.5% over the previous month, spurred by energy and metal prices. Due to the endowment of such natural resources, many African countries have enjoyed short run gains from these price increases. On the contrary, rising global food prices continue to be a major concern for inflationary trends and increased food insecurity for most countries in the region particularly for net food importing countries.