Is Poverty in Africa Overestimated Because of Poor Data?

Africa’s GDP growth rates in the last decade have been averaging about 5 per cent per year, making it second only to East Asia as the fastest growing region. Seven of the 10 fastest growing economies in the last decade are in Africa. Trade with the rest of the world has increased by 200 per cent since 2000, although from a low base. In addition, Africa appears to have recovered from the recent global economic slowdown better than anyone predicted and the region is expected to resume its recent growth trajectory much earlier than envisaged. Further, projections by the World Bank and IMF indicate that on average Africa will have the world’s fastest growing economy over the next five years. All of these have led to an upbeat buzz about the future of Africa (see The Economist, 2011, 2013; Sachs, 2012; African Development Bank, 2011). Non-income indicators of the Millennium Development Goals (MDGs) such as primary school enrollment, child mortality, gender parity in schooling, and access to water and sanitation services are also improving (Demombynes and Trommlerová, 2012).