The International Monetary Fund Economic growth in sub-Saharan Africa has largely returned to pre-financial crisis levels but monetary tightening has failed to keep pace, with rising fuel and food prices a growing threat.
IMF reiterated its forecast of 5.5 percent GDP growth for the region this year and 5.9 percent in 2012, with low-income countries that make up the bulk of the continent recovering the fastest.
The IMF has said in its latest regional economic outlook that Sub-Saharan Africa's recovery from the crisis-induced slowdown is well under way, with growth in most countries now back fairly close to the high levels of the mid 2000s.
But it warned rising food and fuel prices were about to test the region's resilience of the past few years once again.
The 122-page report said that these price shocks, coupled with the recovery, are likely to lead to higher inflation in most countries and to deteriorating current account deficits in a number of fuel importers.
It said monetary policy remains looser than desirable in many countries in the region while the interest rates have failed to keep pace with the cyclical recovery, and that policy now needs to move ahead of the curve.
Growth forecasts varied, with the poorest countries recovering the fastest - such as Ethiopia, forecast to grow 8.5 percent this year - and middle-income countries lagging behind.
The report assumed an average oil price of $107 per barrel for this year compared to $80 per barrel in 2010, an increase of more than a third which would result in higher import bills for most countries in the region.
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IMF reiterated its forecast of 5.5 percent GDP growth for the region this year and 5.9 percent in 2012, with low-income countries that make up the bulk of the continent recovering the fastest.
The IMF has said in its latest regional economic outlook that Sub-Saharan Africa's recovery from the crisis-induced slowdown is well under way, with growth in most countries now back fairly close to the high levels of the mid 2000s.
But it warned rising food and fuel prices were about to test the region's resilience of the past few years once again.
The 122-page report said that these price shocks, coupled with the recovery, are likely to lead to higher inflation in most countries and to deteriorating current account deficits in a number of fuel importers.
It said monetary policy remains looser than desirable in many countries in the region while the interest rates have failed to keep pace with the cyclical recovery, and that policy now needs to move ahead of the curve.
Growth forecasts varied, with the poorest countries recovering the fastest - such as Ethiopia, forecast to grow 8.5 percent this year - and middle-income countries lagging behind.
The report assumed an average oil price of $107 per barrel for this year compared to $80 per barrel in 2010, an increase of more than a third which would result in higher import bills for most countries in the region.
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