AFRICA
Peace drives growth

African economies grew by 5.8 percent last year, powered by increasing commodity prices, but the growth is yet to be translated in social development, a report said on Wednesday.

The Economic Commission on Africa's annual report said poor infrastructural development, high oil prices and political instability would choke the 2008 growth predicted to be 6.2 percent.

"African economies continued to sustain the growth momentum of previous years, recording an overall real GDP growth rate of 5.8 percent in 2007," said the report.

"Although 30 countries recorded higher economic growth rates in 2007 than 2006 ... economic growth recovery in Africa has not yet translated into meaningful social development and has not benefited vulnerable groups," it added.

"Africa's growth performance was driven mainly by robust global demand and high commodity prices."

The report said continued consolidation and management of macroeconomic stability, commitment to economic reforms, increased private capital flows, debt relief and increasing non-fuel exports were other factors that fuelled the growth.

"Africa has also witnessed a decline in political conflicts and wars, especially in West and Central Africa, though peace remains fragile in some parts of the continent."

It said a slowdown of the US economy, inflationary pressure from rising commodity and oil prices and political instability in some countries could affect the 2008 growth.

AFP

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