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Working Paper 98 - Africa and the Global Economic Crisis: Strategies for Preserving the Foundations of Long-Term Growth
The global economic crisis has definitely caused a growth crisis in African economies. Growth rates have plummeted, with some countries even experiencing contraction. The crisis is hitting the key drivers of growth, especially trade flows, capital inflows, natural resource sectors (oil and minerals) and agricultural exports. And the worst may be yet to come. Even the growth rate of 2.8 percent projected for 2009 in February appears to have been optimistic. The revised forecasts put Africa’s growth at 2.3 percent for 2009 (Table1). This implies that for the first time since 1994, per capita income will contract in 2009 in several countries and for the continent as a whole. Indeed a growth crisis has set in.