Weathering the Storm: Africa after the Crisis

Throughout the financial crisis, Africa has proved resilient, despite a 50 percent reduction in the pace of economic growth from the previous decade. Prudent macroeconomic policies prior to the crisis, coupled with sustained foreign aid and loan support from the IMF, the World Bank and the African Development Bank, have softened the impact of the crisis on Africa. However, challenges still remain to ensure that African countries stay on track to meet the Millenium Development Goals and recover growth rates to pre-crisis levels.

On July 7, the Brookings Institution hosted Abebe Shimeles, principal research economist at the African Development Bank, for a discussion of the recently released African Economic Outlook for 2010. The report, produced by the African Development Bank, the Organization for Economic Co-operation and Development (OECD) and the United Nations Economic Commission for Africa (UNECA), reviews Africa’s performance through the crisis and presents projections for future recovery. Dr. Shimeles’ remarks were followed by a panel discussion with Brookings scholars to examine how public resources may be utilized in Africa to reduce external dependence moving forward.