IMF reports says textile quotas affected economies of Kenya, Lesotho, Madagascar, Mauritius & Swaziland
22 Sep '05
1 min read
The economies of African nations is slowing says International Monetary Fund in its recently released report on The Africa Regional Economic Outlook in the region.
This year sub-Saharan Africa's growth is expected reach 4.8 percent this year down form 5.4 percent last year.
This growth, says the report, is underpinned by global demand and improved domestic policies and the lowest overall inflation in 30 years.
IMF has good news for next year for which it has forecast sub-Saharan Africa's growth at 5.9 percent overall, next year.
It has particularly singled out in its report countries like Kenya, Lesotho, Madagascar, Mauritius and Swaziland, which are major textile producers, to have been affected by the elimination in textile quotas that came in to effect, since January this year.
But, IMF report says, “the extent of the impact at this stage is still uncertain."
Besides, the IMF attributes the expected slowdown this year to weaker growth in non-oil commodity prices than were seen last year, notably in the cotton sector.
Deterioration in commodity exports prices; rising housing prices and high unemployment have been listed as other factors for lower growth.
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