Friday, November 8, 2013

Good GDP Growth Rates in Uganda, Ethiopia and Tanzania

The International Monetary Fund (IMF) published in October 2013 its Regional Economic Outlook for Sub-Saharan Africa.  It looked especially at drivers of growth in nonresource-rich countries and the issue of managing volatile capital flows.

One of the surprising results of the IMF study is that eight of the twelve fastest-growing economies in Africa in recent years did not rely on natural resources.  Six countries--Burkina Faso, Ethiopia, Mozambique, Rwanda, Tanzania and Uganda--had on average from 1995 to 2010 a GDP growth rate of at least 5 percent and a per capita growth rate of at least 3 percent.  The IMF credited their success to controlling public finance, curbing inflation and improving the climate for the private sector.

In the case of Ethiopia, the IMF said the real GDP growth rate from 1995 to 2010 averaged 7.3 percent and the real GDP per capita growth rate averaged 4.6 percent.  While these averages are lower than those claimed by the government of Ethiopia, they are still very impressive by any measure.

The Economist did a brief analysis of the the IMF study on 2 November 2013 titled "No Need to Dig."  It focused on those countries in Sub-Saharan Africa with the highest growth rates.

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