Africa GDP seen rising, euro zone a concern

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Africa’s economy will expand 4.5 percent this year before accelerating to 4.8 percent in 2013, the African Development Bank said though it warned the festering euro zone crisis may hurt demand for African exports.

AfDB said Africa’s economy grew 3.4 percent in 2011, with North Africa’s economic output expanding 0.5 percent and sub-Saharan Africa growing more than 5 percent.
“The economic outlook for Africa remains optimistic. Natural resource-rich economies are expected to do better than more mature emerging economies,” AfDB said in its annual African Economic Outlook, Reuters reports.

However, AfDB cautioned that the euro zone’s economic woes might dent demand for African commodities. African economies depend heavily for European markets for exports including tea, coffee, cotton, sugar as well as the tourism sector.
“The continued economic crisis in the euro area may reduce demand for African exports, while lowering external resource inflows,” it said.

The resource inflows include foreign direct investments and remittances.