![Africa in the Roman Empire:](http://www.zambiahuntingexpeditions.com//img/africa_in_the_roman_empire_connectivity.jpg)
North African economy
For those looking for a sunny economic outlook, it might be worth a trip to North Africa.
Economic growth in Egypt, Morocco and Tunisia could surge as high as 6%-a-year, according to a new report from London-based firm Capital Economics. But they will only achieve that level with much-needed economic reforms the report’s author Jason Tuvey notes.
Egyptian President Abdel Fattah al-Sisi is urging investors to recognize the impact of reforms aimed at invigorating the country’s economy. Amr Abdallah Dalsh/ReutersThe reasons for the optimistic outlook are two-fold. The first is that these economies are starting from a lower base and could theoretically catch up to the richer ones more rapidly by implementing key technologies and focusing on high-productivity industries. Tuvey thinks that these three countries could easily surpass their historical average of 2-3% a year per-capita GDP growth and see their average GDP-per-person grow by 4-5% a year.
The second reason is that the three North African countries have a rapidly growing population, with the workforce set to grow by about 1% a year. Tuvey says that should add 1% to GDP just by new workers joining the workforce.
Combining the two figures, Capital Economics gets the outlook of 5-6% economic growth a year.
But the report warns that the key to continued growth will be government-led economic reform. “One of the key impediments to growth in recent years has been a low rate of investment, ” the report states. Establishing economic stability and improving what are seen as poor business environments should aid in pushing these economies “towards strong and sustainable growth.”
RELATED VIDEO
![The North African Kingdom of Morocco (المملكة](/img/video/the_north_african_kingdom_of_morocco.jpg)
![World War Two. North African campaign. Archive film 91813](/img/video/world_war_two_north_african_campaign.jpg)
![Forum Africa 2011: debate of sessions "The North-African](/img/video/forum_africa_2011_debate_of_sessions.jpg)
Share this Post
Related posts
Chad African economy
Economic growth in Chad stood at 7.2% in 2014, according to estimates, and could reach 9% in 2015 due to the start of production…
Read MoreSouth African economy type
Economy - overview: South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed…
Read More