Africa: Growth of Oil Exporting Countries to Decline – IMF

International Monetary Fund (IMF) has said that the economic growth of Africa’s oil exporting countries was expected to fall by half a point to an average 8 percent in 2008.

This, it said, is due to the “lower-than-expected output in the Niger Delta and Equatorial Guinea plus weaker non-oil growth in Chad due to insecurity ” as well as global financial turmoil.
In its latest outlook for Africa launched yesterday in Nairobi, Kenya, IMF also said that economic growth in Sub-Saharan Africa (SSA) will dip to 6 percent in 2008 and 2009 due to tough global conditions, while inflation is seen rising to 12 percent this year.

The report, titled “Sub-Saharan Africa: A test of Policy Frameworks”, also predicted that the worsening macroeconomic situation reflected headwinds from strong increases in food and fuel prices, slower world growth and global financial turmoil.

Oil importers growth will also decrease by half a point to an average five percent, the report said. According to it, oil exporters’ fiscal surpluses, excluding grants, are projected to rise to seven percent of GDP in 2008, “reflecting a substantial oil revenue windfall.”

AllAfrica