ABUJA – Dr Abwaku Englama, the Director-General, West African Monetary Institute (WAMI), Accra, Ghana, on Wednesday said global economic recovery decreased by two per cent in 2013.
Englama said this during the 31st Meeting of the Committee of Governors of Central Banks of the West African Monetary Zone in Abuja.
“The global economic recovery drive slowed during the review period with output growth estimated at 3.0 per cent in 2013 compared to 3.2 per cent recorded in 2012.
“The slowdown was due to decreased output growth across regions but in varying degrees.
“Although the uncertainties over the sovereign debt crises and financial sector concerns in the euro zone seemed to be gradually easing, recovery remained slow and unemployment high.
“However, in Sub-Sahara Africa, output growth at 4.9 per cent in 2013 was stagnant relative to 2012 on account of weaker terms of trade,’’ he said.
According to Englama, the Real Gross Domestic Product (GDP), for the West African Monetary Zone (WAMZ), however, witnessed an increasingly robust growth of 7.0 per cent in 2013.
He said that the increase was largely credited to strong performance in agriculture and the services sectors.
Englama said that the demand in the major economies had resulted partly in the lowering of global inflationary pressures.
“Inflation in the advanced economies continued on a downward trend, averaging 1.5 per cent, down by 0.5 percentage points during the period compared to the corresponding period of 2012.
“Inflation also declined in the emerging market and developing economies on account of failing commodity prices and slow pace of growth.[eap_ad_2]
On compliance with the macro-economic convergence, Englama said that Nigeria was the only country that satisfied all the four primary criteria while Liberia and Sierra Leone satisfied three each.
“The criteria includes, inflation and fiscal deficit, gross external reserves, primary convergence and the central bank financing criteria.’’
He said that inflation and fiscal deficit had continued to be a challenge for member states, while central bank financing and gross external reserves were the more frequently satisfied criteria.
On trade related issues, he said WAMI in collaboration with the World Bank had recently concluded the assessment phase of the WAMZ Trade and Transport Facility Assessment (TTFA) project.
“The draft report of the assessment will be validated by the Trade Experts Committee of the WAMZ in August and presented to the WAMZ Trade Ministers’ Forum slated for November, 2014.
“The protocol on Free Movement of Persons, Right of Residence and Establishment is also being reviewed with a view to enhancing its effectiveness.
“This include the need to abolish yellow fever health certificate and resident permit fees as well as introducing biometric national identity cards,’’ Englama explained.
On financial sector development, Englama said that the banking industry across the zone remained safe and sound, as suggested by improvements in financial soundness indicators.
He said that efforts were being intensified to expedite the capital market integration process in the sub-region. (NAN)[eap_ad_3]