UNITED NATIONS: The African economy will grow by five percent in 2011 as it steps up its recovery from the global crisis, but the new spurt will not be enough to significantly cut jobless rates, the UN said Monday.
Countries with oil and other in-demand commodities are leading the new expansion, said a report by the UN's Economic Commission for Africa and the African Union.
The gross domestic product growth rate predicted for the continent was up from 4.7 percent in 2010, when higher commodity prices and demand "propelled a sharp upswing" in exports, which had fallen by 32 percent in 2009, according to the The Economic Report on Africa 2011.
Africa's oil exporting countries performed better than those that have no commodities, said the report.
West Africa and East Africa are tipped to be the fastest growing regions in 2011 as they were last year.
But the report said the higher 2011 growth rates are below those Africa saw before the 2008-2009 financial and economic crisis. "They also seem to be below the rates needed to significantly reduce the continent's unemployment and poverty."
The outlook for 2011 and beyond will depend strongly on the pace and duration of growth in Africa's major trading partners, Europe, North America and the new Asian economic powerhouses, said the report.
The UN and AU report again highlighted that Africa's "heavy dependence on natural resource exports poses difficult and persistent problems" in generating growth and making sure it is shared across the continent.
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