An Assessment of the Current Economic Conditions of Africa Essay

An Assessment of the Current Economic Conditions of Africa - Essay Example However, the continent managed to present a 5% rise in economic activity. This was as a result of greater metal and oil prices, significant boost in formal development aid and enhanced economic stability. In 2011, the economic growth of Africa fell. The current economy of Africa seems to be recovering from a ‘devastating’ situation, following the economic performance decline in 2011. The African region has been shaken by the natural phenomenon as well as critical civil wars within countries, among other human activated activities. When all this is combined, it will always impact into a region’s economy either in a positive, or a negative manner. In a span of one decade, we have seen the continent’s economy fall and with no time able to recover again. Africa’s economy was not at its worst in 2011 as many would think; holding 3.4% GDP growth from 5% in 2010. Tracing back to 2009, the economy was even lower with 3%; a percentage lower than in 2011 befor e shooting to 5%, which means that the continent has the capability to put itself back to a better position, which would contribute to an increase in the total world economic growth. This is the reason to disagree with the position that the decline was devastating; instead it is better to term the decline as average though the impact was deeply felt by the population of the continent. Africa is a continent with about 54 countries, and over one billion people living at different levels of life. This prompts the need for development in the countries that have loopholes in governance among other necessities, to fasten the growth. In one way or the other, all the countries new and existing need to co-operate and focus on one mission of strengthening the economy. Africa’s economic situation in the 1st phase of 2012 shows a forecast of recovering process by end of 2012. â€Å"With the gradual recovery of North African economies, Africa’s average growth is expected to reboun d to 4.5% in 2012 and 4.8% in 2013† (â€Å"African economic outlook 2012: Macroeconomic† 15). North African economy had been compressed following the political problems, social tension and civil wars experienced. These are countries with credible sources of oil depositories where the pressure within was felt in the whole of Africa. In South Africa, the 2010 GDP growth was at 2.9%, with an estimated increase to 3.1% in 2011(â€Å"South Africa† africaeconomicoutlook.org). However, due to basic local weaknesses and the weak global economic recovery, there was an expected slowdown in growth in 2012. In 2013, the GDP growth of South Africa was estimated to rise to 3.6% (â€Å"South Africa† africaeconomicoutlook.org). In 2011, the rate of consumption and investment grew by 3.5% and 5.2% respectively(â€Å"South Africa† africaeconomicoutlook.org). Africa was the largest beneficiary of the IDA (International Development Association), World Bank’s fun d in 2011, with a $ 7.0 billion financial commitment to improve the economy and population’s living condition to eradicate poverty (â€Å"The World Bank Annual Report 2011† 3). Much remains to be achieved in the continent despite the huge borrowing and aids received in the region. Even after the debt relief in 2005 that was a ‘salvation’ of the African countries, debt seems to be on the rise though the act the suppressed rate of borrowing. Today more than ever, the continent has changed the rate and pattern of borrowing. African countries are keen on the interests and conditions involved when taking development funds, this has resulted to China being preferred over the World Bank on financial lending in Africa. However, Africa still remains fragile where the total expenditure in most countries