INTERVIEW-World Bank lowers Africa forecast on global recession

Wed Nov 25, 2009 5:49pm GMT
 

* Africa to grow by 1.7 percent in 2009, 2.5 percent in 2010

* Requires infrastructure investment of $98 billion annually

* Chinese investment welcome

By Helen Nyambura-Mwaura

NAIROBI, Nov 25 (Reuters) - African economies will grow by an average of 1.7 percent this year, a downgrade from an earlier forecast of 3.5 percent, as a result of the global recession, the World Bank's vice president for Africa said on Wednesday.

Obiageli Ezekwesili told Reuters the continent's growth in 2010 will be 2.5 percent, down from an annual average of 5.8 percent over the last decade.

"This year it is 1.7 percent and next year, we think it will probably get to 2.5 percent," she said. "Commodities are gradually strengthening, (there will be growth) if there is a resumption in private capital flows, and diaspora remittances, investments in construction then the agriculture sectors."

She said Africa's economic recovery can be quickened if governments invest in core infrastructure projects and China's investment on the continent is welcome.   Continued...

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