IMF: Asia to drive Africa's 2011 growth

Ehud · 2011-01-28T06:42:43+00:00

By james anyanzwa The global economy is projected to grow by 4.5 per cent this year buoyed by increased activities in the emerging and developing economies. According to the International Monetary Funds latest World Economic Outlook report for 2011, growth in emerging and developing economies is expected to remain buoyant at 6.5 per cent in both 2011 and 2012, though a modest slowdown from the seven per cent growth registered last year. Activity in the advanced economies is projected to expand by 2.5 per cent. China, India and the Sub-Saharan Africa are expected to grow by 9.6 per cent, 8.4 per cent and 5.5 per cent in 2011 respectively. The United States is, however, forecast to grow by three per cent while growth in Europe remain uncertain, owing to concerns over sovereign and banking risk, political feasibility of current and envisioned austerity measures, and the lack of a comprehensive solution. Certainly, the visit to the United States by the Chinese President Hu Jintao last week is widely viewed as a major a milestone in the relationship between the two nations. Subdued confidence The visit, billed as the most important by a Chinese leader in 30 years and one of the most important of the Obama presidency, is expected to set the stage for future relations between the United States and China. China has grown in importance in the world over the past 10 years and its importance to the United States has broadened and deepened. Chinas influence is growing not only in East Asia, but also in Africa, the Middle East and Latin America. China corners the market on minerals, its low-cost products ensnare consumers, and it disburses aid and development money as it will, building roads, railroads and factories. Most countries in sub-Saharan Africa have recovered quickly from the global financial crisis. The pace of the recovery, however, varies within the region with output growth in most oil exporters and low-income countries close to pre-crisis highs. The growing trade ties with Asia are also playing a role in the regions recovery, primarily through commodity markets. Output growth has rebounded in South Africa, but high unemployment and subdued confidence are expected to continue to dampen the pace of recovery, restricting growth to about 3.5 per cent in 2011. The pace of recovery in Europe, the dominant trade partner for most non-oil-exporting countries in sub-Saharan Africa, is modest and uncertain. Among oil-exporting countries in Africa, Nigeria is poised to record significant growth this year. The Standard | Online Edition :: IMF: Asia to drive Africa's 2011 growth

Thread starter Ehud
Start date Jan 28, 2011

Ehud

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IMF: Asia to drive Africa's 2011 growth

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