2005 - OPEC

etter results due to strong oil, copper and other commodity prices. Venezuela, Peru and Chile
recorded particularly strong growth.
In 2004, Africa’s GDP grew by 5.1 per cent and 2005 saw consolidation at approximately 4.9
per cent. Overall global economic growth boosted commodity prices and the gradual reform
process in many countries saw a number achieve much improved growth rates. For example,
Nigeria continued to benefit from reforms in economic policy and institutional change. In 2005,
Nigeria grew by 6.9 per cent, a considerable improvement on the six per cent achieved in
2004. North African countries achieved rates of growth in the region of five per cent, whilst
Sub-Saharan Africa achieved 5.4 per cent. Although oil exporters did grow by an above-
average 5.6 per cent, non-oil exporters also made progress. South Africa expanded by a
solid 4.9 per cent in 2005 as a result of buoyant domestic demand and continued structural
improvements.
OPEC Member Countries
Macroeconomic performance in OPEC Member Countries (MCs) varied in 2005 (Table 2, see
page 15). Some countries hit capacity constraints and growth rates, such as the SP Libyan
AJ and Qatar. Other countries such as Saudi Arabia, Indonesia, the IR Iran and the United
Arab Emirates registered higher growth rates as a result of increasing production and/or ac-
celeration in non-oil sectors. Indonesia had the highest GDP growth rate in 2005, at 9.3 per
cent, albeit below the huge increase of 17.9 per cent in 2004. Overall, the OPEC group of
countries saw GDP growth decline, in 2005, to 5.7 per cent. This followed a record high of
seven per cent in 2004.
In an attempt to diversify beyond their energy sectors, many countries in the region demonstrated
a growing interest in financial services, tourism and the aluminium industry. The strong perfor-
mance in these sectors reflects high oil prices and increased government spending, which in turn
supports private consumption and investment. In recent years an increasing amount of revenues
from oil have been reinvested back into the countries’ economies. Business conditions have also
remained buoyant and company profitability strong. Governments have refilled their Oil Stabi-
lisation Funds, accumulated foreign exchange reserves and acquired foreign assets. Remittance
hikes to neighbouring countries have also played a role in improving economic conditions.
In comparison with non-OPEC developing countries (Table 3, see page 15), OPEC MCs in 2005
on average saw slightly lower GDP growth. However, OPEC MCs did see petroleum exports deliver
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