OWN CORRESPONDENT, London | Monday 7.25pm
SUB-SAHARAN Africa, with Mozambique in the lead, is set to be the fastest-growing region in the world this year, according to the latest annual analysis by the respected Economist Intelligence Unit.
It forecasts that the world will be a richer place than it has ever been, even if 1,3-billion people will still be living on less than a dollar a day.
Overall, world gross domestic product will rise a respectable 2,8%, up from an estimated 2,5% in 1999, on the back of developed economies and better performances from many emerging markets.
The picture in Europe is healthy, if not spectacular. Growth is predicted at 2,6%, with Ireland and Finland particularly strong, compared to 1,9% in 1999. Asia and Australasia will also experience lower-than-average growth of 2,7%, against 2,8% last year, with strong performances in southeast Asia offset by Japan’s relative weakness.
The transition economies — eastern Europe and Russia — will fare worst, with GDP growth of just 2,1%, the Unit predicts.
By far the best performances are likely to come from sub-Saharan countries led by Mozambique, with 10% growth, Botswana (8,9%) and Angola (8,0). The predicted regional average of 4,0 is double that of 1999.
Those three countries, with their mining sectors, are set to profit on the back of higher commodity prices.
Other strong performers worldwide will be Singapore on 8,4% growth, Armenia on 8,0%, China on 7,2%, and Albania and Ireland on 7,0% each. But risks remain, the Unit points out. –AFP