The top priority for all sub-Saharan African countries must be to contain the adverse impact of the crisis on economic growth and poverty, according to a report on Sub-Saharan African economic outlook released by the International Monetary Fund (IMF) Friday.
Efforts should be made to preserve the hard-won gains of recent years, including macroeconomic stability and debt sustainability, it says.
The region is seriously affected by the current global financial crisis, according to the report.
"These hard-won economic gains are now at risk. Like the rest of the world, Africa is feeling the impact of the global financial crisis," it says.
Therefore, the report urges all possible measures taken to check the adverse impact of the rampant financial crisis on the region's economy, while warning that "Temptations to respond to weakening balance of payments positions with protectionist measures or by reverting to administrative controls need to be avoided."
Over the past decade sub-Saharan Africa has made remarkable gains in promoting growth and achieving economic stability.
Growth, which is essential for much-needed poverty reduction, averaged more than 6 percent over the past five years; inflation had fallen to single-digit levels before the fuel and food price shocks of 2008; and reserves were built up. These positive developments relied on strong economic policies; a favorable external environment, especially rising commodity prices; and debt relief and aid from the international community, says the report.
This April 2009 issue of the Regional Economic Outlook: Sub-Saharan Africa (REO) reflects the developments in the region as of April 2009.
Sub-Saharan Africa is a geographical term used to describe the area of the African continent which lies south of the Sahara, or those African countries which are fully or partially located south of the Sahara. It contrasts with North Africa, which is part of the Arab World.
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article