AFRICAN ECONOMIC OUTLOOK WARNS AGAINST EXCESSIVE OPTIMISM

By Babajide Komolafe The Africa Economic Outlook has predicted a positive outlook for African economies but warned against excessive optimism about the economic growth prospect of the Continent.

The report, which was launched yesterday in Arusha, Tanzania, as a prelude to the  2012 annual meetings of the African Development Bank  (AfDB) Group is a  flagship compendium of data on 53 African countries jointly published by the AfDB, the OECD, the UNDP and the UN Economic Commission for Africa.

Africa's economy grew 3.4 percent in 2011, with North Africa recording 0.5 percent growth compared to sub-Saharan Africa's over 5 percent growth in that year.

'The economic outlook for Africa remains optimistic. Natural resource-rich economies are expected to do better than more mature emerging economies,' The African Economic Outlook said.

The report attributes growth to natural resources exports, migrant remittances and good economic policies maintained by some of the continent's countries, aided by good weather and relative stability in the international market.

However, it warned that the crisis in Europe which is Africa's premier economic and trading partner could undermine demand for exports.

'The continued economic crisis in the euro area may reduce demand for African exports, while lowering external resource inflows,' it said.

In the same vein, AfDB President, Donald Kaberuka, commended African countries for maintaining growth, but urged caution given the uncertain external environment.

'I appeal for caution and not to show excessive optimism with regard to the continent's economic growth, because there are other issues that need to be considered carefully,' the President said at the report's launching ceremony.