Economic Growth In Africa

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The critical drivers and enablers of high levels of sustainable growth frica has achieved a relatively high economic growth rate in the last two decades, with the continent-wide average GDP growth rate reaching 6.1 per cent during the 2004-2007 period, from a low of about 0 per cent in 1992 (figure 4.1). Although there was wide variation in growth rates across the continent, this growth rate was widespread. For example, between 2004 and 2007, the average growth rates in North, East, West, Central and Southern Africa were 5.6, 7.7, 5.5, 10.5 and 5.0 per cent respectively; the average growth rate for oil exporters was 7.0 per cent, while for fragile States it was 3.5 per cent. Figure 4.1 Annual and five-year moving average of GDP growth (%) 9 GDP Growth A 4 Africa’s growth over the past decade remained below the 7 per cent required to meet the MDGs 8 7 6 5 4 3 2 1 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 5-Year Moving Average Growth Rate Source: ECA calculations based on UN-DESA, 2009. Although impressive by Africa’s historical standards, this growth rate is lower than the 7 per cent required for meeting the MDGs. In addition, it was not accompanied by employment growth. Unemployment rates remained stubbornly high, in double digits. Although unemployment data in Africa are hard to come by and what are available may be unreliable, available data suggest that unemployment rates averaged 119 12.2 per cent between 1994 and 1997, 15.5 per cent in 2000-2001 and 14.2 per cent in 2005-2006. Youth unemployment rates were 25.1 and 26.7 per cent in the 1994-1999 and 2000-2006 periods respectively (WDI, 2009). High unemployment rates were not limited to “unskilled and uneducated” workers; during the 20052006 period, unemployment rates among secondary school and university graduates were 27 and

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