(MENAFN- Morocco Business News) Morocco and Egypt achieved the best economic performance among North African countries, said UN Economic Commission for Africa (ECA) in its “Economic Report on Africa 2010â€.
The report notes that the two countries have been able to withstand the impact of the economic crisis "relatively well" compared to many economies in the continent.
Presented on Tuesday at the headquarters of the ECA in Addis Ababa, the document compares Morocco's GDP growth in 2009 (5.3%), with those of other economies like Egypt (4.7%), Tunisia (3%), Mauritania (2.3%), Algeria (2.1%) and Libya (1.8%).
Highlighting the good performance of the North African region, it particularly hails the Moroccan and Egyptian economies for their good 2009 results due to “exceptionally high agricultural output in Morocco and strong activity in construction and telecommunications in Egypt.â€
The North African “region's GDP grew by 3.5% in 2009, down from the 4.1% recorded in 2008,†the document says, adding that “this performance largely reflects the remarkable resilience of the Egyptian and Moroccan economies, which expanded by 4.7 per cent and 5.3 per cent, respectively.â€
It also pointed out that in both countries weak external demand was largely offset by strong domestic demand, which was aided by well-targeted countercyclical fiscal measures and loose monetary conditions.
Concerning the overall performance of the African continent, the ECA's report stressed that “African countries experienced deterioration in economic and social conditions in 2009.â€
The impact of the economic and financial crisis on Africa became evident in 2009, it explained, adding that these effects took the form of weakened demand and lower export prices, decreased remittances and reduced private capital inflows.
“Africa's GDP expanded by a mere 1.6% in 2009 compared to 4.9% in 2008, breaking six consecutive years of economic growth of 5% or more,†the report added.
As to future prospects, the document projected that Africa's GDP growth will increase from 1.6% in 2009 to 4.3 % in 2010.
However, “given uncertain external and internal scenarios, UNECA estimates suggest that Africa's GDP growth might fluctuate between 3.6% and 5%.â€
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