Lusaka: The risk of a sharper slowdown in the United States economy and a fall in global commodity demand and prices are likely to pose a major challenge to Africa's growth rate this year, according to the latest Economic Report on Africa.

The report adds that high oil prices, inefficient public infrastructure and unreliable energy supply at the national level as well as poor integration of transportation will affect the continent's growth. It says that in addition to political instability in some countries, poor energy networks at the regional level continue to pose important constraints to Africa's growth.

"High oil prices will hurt oil importers through the current account and inflationary pressures," the report adds. The report obtained by ZANIS here yesterday states that African economies are forecast to grow by an average of 6.2 per cent this year.

The report, enttitled "Africa and the Monterrey Consensus: Tracking Performance and Progress", notes that African economies continue to sustain the growth momentum of previous years, recording an overall real GDP growth rate of 5.8 per cent in 2007. The Monterrey Consensus was the outcome of the 2002 Monterrey Conference, the United Nations International Conference on Financing for Development and was adopted by Heads of State and Government on March 22, 2002.

New development aid commitments from the United States and the European Union and other countries were made at the conference and countries also reached agreements on other issues, including debt relief, fighting corruption, and policy coherence.

Source : PTI