This publication is the 7th in an annual series that reviews the continent's economic performance and near-term prospects. It finds that, continuing the economic recovery since the mid-1990s, African countries generally recorded strong growth in 2005, a major turnaround after decades of economic stagnation. However, growth remains uneven across countries, and in many countries fast growth has not been accompanied by substantial gains in employment or poverty reduction. There are a number of imbalances which constrain the ability of African countries to accelerate and sustain growth, between exports and imports, between resource inflows and debt payments, and between domestic savings and domestic investment. African countries thus need to mobilise more domestic and external financial resources, including official and private capital flows, to fill the financing gaps in order to accelerate growth and sustain higher levels of growth. This year's report focuses on how better-managed capital flows could help African countries achieve their development goals.