ABUJA (AFP) - West African regional bloc ECOWAS said Saturday rising world's oil prices is a major challenge to economic growth in the sub-region.

"Persistently high oil prices which peaked at 127.82 dollar per barrel yesterday remain a major challenge to growth and macroeconomic stability in the medium term," the ECOWAS Commission said in an interim report here.

The report, presented to a mid-year meeting of the council of ministers of the Economic Community of West African States, said the "increased energy costs are constraining investment and growth in the net oil-producing member states".

"The persistent rise in oil prises has had mixed budgetary implications on the regional economy, positive for the oil exporting countries and negative for the other member-states which are oil-importing," it said.

Out of the 15 members of ECOWAS, only Nigeria and Ivory Coast produce and export oil.

The report said gross domestic product (GDP) in west Africa rose to 199.1 billion dollars last year, compared with 170.1 billion dollars in 2006 and 141.9 billion in 2005.

It said GDP is expected to rise to 232.7 billion dollars in 2008, and growth rate above five percent.

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