Growth in Africa will decline to 2 per cent this year, a joint report released Today said, warning of a more severe economic scenario than previously expected, dpa reported. The report, by the United Nations Economic Commission for Africa (ECA) and the African Union, said 2008 saw economic growth sag to 5.1 per cent from 6 per cent the previous year. The slowdown will be driven by a drop in both foreign and domestic demand for African goods and a decline in direct foreign investments into the continent. Remittances from abroad are also dropping, further impacting the poor in Africa reliant on these cash flows. The economic news comes on the heels of a World Health Organization report which said progress was behind schedule on reaching the Millennium Development Goals. Achieving the targets by 2015 was meant to help improve the lives of people around the world, but this might be hampered by a lack of funds. "The global economic down turn is slowing progress towards achieving the MDGs," warned the ECA's Economic Report on Africa 2009. To recover and come out stronger, Africa will need to have better regional economic cooperation. The overwhelming majority of Africa's trade is external, with less than 10 per cent taking place between African nations. Furthermore, in line with similar UN recommendations, the ECA report says it is vital for Africa to improve its agricultural sector. This would also help ensure food security in the continent, which is a net food importer. Boosting the agricultural sector would achieve the best results if it was linked to other sectors and desperately needed improvements to infrastructure. The International Monetary Fund has predicted a growth rate of 3.2 per cent for North Africa and a smaller 1.6 per cent rate for Sub- Saharan Africa. Globally, growth will likely be a negative 1.3 per cent this year, with a moderate recovery expected in 2010. Developed nations will likely need even longer to reach positive growth.
