Abstract

African economies are facing the critical challenge of raising the rate of GDP growth and sustaining high growth rates and thus meet the Millennium Development Goals (MDGs). The performance of agriculture is more paradoxical and African exports of industrial goods are dominated by mining and crude oil. The financial systems remain largely underdeveloped both in terms of the size and range of financial instruments and services offered. This article explores the recent growth performance both at the continental and subregional level. It discusses disparities in growth performance and the factors behind the observed disparities across countries and subregions. It also discusses developments at the sectoral level and progress and challenges in human development, closing with a brief exposition of the prospects for 2007. The paper further analyses the HIV/AIDS in the continent and its impact on the economy.