Economic performance in African least developed countries 1999: the challenges of poverty reduction in Africa

Abstract

In 1998, African Least Developed Countries (LDCs) experienced an improvement in economic performance, with GDP growth rising to 4.1% compared to 2.4% in 1997. This recovery was driven by favorable weather conditions, ongoing economic reforms since the mid-1980s promoting market-based policies, and relative peace in previously war-torn regions, which allowed displaced populations to return and agricultural production to rebound. Despite declining commodity prices, export volumes surged by nearly 30%, but imports grew at a similar rate, resulting in minimal trade balance improvements. External debt rose to US$174 billion, consuming a significant portion of export earnings, while debt relief efforts remained inadequate. Domestic investment increased slightly but was insufficient to sustain full economic potential. Despite external imbalances and reduced foreign inflows, macroeconomic stability was maintained, highlighting both progress and persistent challenges in African LDCs' economic recovery.