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AEO 2007 contains, once again, grounds for optimism regarding the continent’s sustained economic development. Backed by favourable commodity prices, increased aid flows, debt forgiveness and the implementation of needed reforms, economic performance improved in many African countries in 2006.
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THE ETHIOPIAN ECONOMY has performed strongly in recent years. Growth has averaged an impressive 8.9 per cent over 2004-06, driven mainly by strongagricultural growth along with expansion in industry and services.
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IN 2005, THE KENYAN ECONOMY sustained the momentum that had started in 2003. Real GDP grew by 5.8 per cent in 2005 compared with 4.9 per cent in 2004, and it is estimated at 5 per cent in 2006. This economic growth is expected to be maintained in the medium term.
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NAMIBIA HAS EXPERIENCED SEVERAL YEARS of moderate economic growth, due mainly to strong performance in diamond production and prudent macroeconomic policies. Growth averaged 4.5 % a year over the period 2000-05, and is expected to reach 4.8 % in 2006 and 2007 and 4.9 % in 2008.
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MOZAMBIQUE HAS ACHIEVED IMPRESSIVE economic expansion since the end of the civil war. Over the past five years, growth averaged 8.9 %. The economy is estimated to have expanded by 7.9 % in 2006.
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In 2006,national economic activity,although down from the performances recorded in 2005, remained buoyant despite the decline in oilsector activity. Real overall GDP growth is estimated at about 1.3 per cent for 2006.
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GROWTH, WHICH HAD REACHED 7.1 per cent in 2005, slowed to 3 per cent in 2006. The 4 per cent growth forecasts for 2007 and 2008 are hardly optimisticas they amount to just a 1 point increase in per capita GDP.
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NIGERIA CONTINUES TO MAKE PROGRESS on its far reaching economic reform programme, the National Economic Empowerment and Development Strategy (NEEDS), aimed at accelerating economic growth, reducing poverty, and achieving the Millennium Development Goals (MDGs).
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AFTER REACHING 5.5 PER CENT IN 2005, growth might only have barely reached 3 per cent in Senegal in 2006, owing to a conjunction of unfavourable factors.
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THE CAMEROON ECONOMY appeared to regain momentum in 2006 after its sluggish performance in 2005. Real GDP growth is projected to reach 4 and 4.1 per cent in 2007 and 2008 respectively.