African Economic Outlook

Africa’s economies face a major challenge overcoming the economic contraction, which resulted from the global recession, while at the same time striving to achieve the UN Millennium Development Goals. While Africa is on the path to recovery, helped by strengthened global trade and the rebound of commodity prices, there is a risk that growth will not be enough to significantly reduce unemployment and poverty. Africa must, therefore, overcome the numerous obstacles, which had, even before the crisis, reduced its growth potential and increased inequality. Part I of this year’s African Economic Outlook analyses Africa’s macroeconomic and structural developments. It examines how the African continent, its regions and countries, have weathered the global crisis and forecasts economic developments in 2010 and 2011. It describes changes in external financial flows and discusses trade policies and measures to foster regional integration and also reports on progress towards the Millennium Development Goals and discusses political and economic governance developments.Part II explores how public resources can be better mobilised for development through more effective, more efficient and fairer taxation. This issue is particularly important given the uncertainties about future export revenues and unstable and unpredictable inflows of Foreign Direct Investment and Official Development Aid.