Istanbul - African economies are beginning to recover from a sharp slowdown that was brought on by the global economic crisis, the International Monetary Fund said Thursday. The continent as a whole will grow by 4 per cent in 2010 after its economies managed a meagre 1.7 per cent this year, the IMF said. That compares with average growth rates of about 6 per cent between 2004 and 2008.
"Africa is one of the innocent victims of the crisis," said IMF chief economist Olivier Blanchard in Istanbul, where the IMF and World Bank are holding their annual meetings this week and next.
While the global downturn had erased years of hard-won gains in combating poverty on the continent, the IMF said there was a silver lining in the fact the most of the region had weathered the crisis better than expected.
Many governments had room to stimulate their economies because of sound policies over the first half of the decade. Africa's growth rates are "encouraging given the severity of the external shocks," the IMF report said.
The continent was forced to weather a range of shocks: South Africa was hurt by its exposure to the financial crisis; Botswana by plunging demand for diamonds; Nigeria, Angola and Libya by falling oil prices; and Morocco and Tunisia by a decline in manufacturing exports.
The IMF also warned that wealthier nations may still cut back aid to Africa as they recover from their own recessions. That could severely impact efforts to reduce poverty, especially in Sub-Saharan Africa.
The World Bank has said that nearly 90 million people are being pushed into extreme poverty because of the economic crisis.
