Regional Economy in Africa
The following paper will discuss the regional economy in Africa; it will discuss the GDP and the positive and negative developments in the region and how they have affected the economy. It will also touch on the trade between Africa and other countries.
Sub-Saharan Africa comprises a heterogeneous group of countries, each having economies, populations, and surface areas of different sizes, and in which GDP or Gross domestic product which is defined as "the market value of all the goods and services produced by labor and property located in the region” (Definition, 2007) GDP growth in Sub-Saharan Africa was projected to rise to about 6½ percent in 2007, driven mainly by rising oil production throughout the region. (Data, 2007)
There are 45 small economies and 2 regional powers (South Africa and Nigeria)—together accounting for 55 percent of the continent's economic activity. Still, 18 countries, accounting for 36 percent of Africa's population, have grown in a sustained manner over the past decade. Another 14 countries, accounting for one-fifth of Africa's population, have experienced little or negative GDP per capita growth over the past decade, and many have been affected by conflict. Among them are Burundi, the Democratic Republic of Congo, and Eritrea. (Data, 2007)
In 2006 the economic growth in Sub-Saharan Africa remained strong at 5.4 percent, this was slightly lower than the 6 percent recorded in 2005. Because of constraints faced in expanding oil production, growth in oil exporting countries declined to 5.6 percent in 2006 from 7.9 percent in 2005. 5% of growth was supported by strong demand for -commodity exports, a good agricultural season, and rising investments into the region. (Data, 2007)
The higher growth trend in Sub-Saharan Africa was caused by positive external developments, such as foreign demand and high commodity prices, and strong domestic investment and productivity...