Posted on March 20, 2014 by iMFdirect
By Paulo Drummond and Estelle Xue Liu
(Version in 中文)
Growing links with China have supported economic growth in sub-Saharan Africa. But the burgeoning commercial and financial ties between the developing subcontinent and the world’s second-biggest economy carry risks as well. These links also expose sub-Saharan African countries to potentially negative spillovers from China if the Asian giant’s growth slows or the composition of its demand changes.
The old aphorism “If America sneezes, the world catches a cold” referred to the U.S. economy’s role as a locomotive for the global economy, but it can now apply to any symbiotic relationship between a dominant economy and its clients. China has become a major development partner of sub-Saharan Africa. It is now the subcontinent’s largest single trading partner and a key investor and provider of aid.
Filed under: Africa, Asia, Economic research, Emerging Markets, Fiscal policy, Globalization, growth, IMF, International Monetary Fund, Low-income countries | Tagged: Angola, China, commodity prices, Congo, Democratic Republic of Congo, Equatorial Guinea, exports, investment, oil exporters, South Africa, Sub-Saharan Africa | Leave a comment »
Posted on January 11, 2014 by iMFdirect
By Christine Lagarde
(Version in Français)
My second stop on this trip to Africa, after Kenya, was Mali—a country that is facing an extraordinarily difficult transition: from restoring political stability to securing economic stability—from crisis to recovery.
Having gone through massive turmoil in 2012, Mali is emerging successfully, thanks to the perseverance and fortitude of its people. Parliamentary and presidential elections have been held, and the newly elected government has put forth a new economic program aimed at increasing growth and reducing poverty.
Filed under: Africa, Emerging Markets, growth, IMF, International Monetary Fund, Investment, Low-income countries, Politics | Tagged: Africa, Christine Lagarde, economic recovery, Mali, poverty, private inv, Sub-Saharan Africa, women | Leave a comment »
Posted on January 8, 2014 by iMFdirect
By Christine Lagarde
For yet a third year I have kept my tradition of starting the New Year with a visit to Sub-Saharan Africa—a region that truly offers great promise! As the world economy has remained focused on the crisis of the advanced economies, Africa has quietly forged ahead with strong growth led by a vibrant private sector and surging foreign investment. Over the past decade Sub-Saharan Africa has posted growth averaging 5.6 percent a year.
The countries of East Africa have done especially well. So what better place to begin my travels this year than in Kenya, which has emerged as one of the region’s “frontier economies”—countries whose recent performance is propelling them toward middle-income status.
Filed under: Africa, Emerging Markets, Employment, growth, IMF, International Monetary Fund, Low-income countries | Tagged: Africa, business, development, fiscal policy, growth, iMFdirect, infrastructure, International Monetary Fund, jobs, Kenya, regional integration, Sub-Saharan Africa | 1 Comment »
Posted on October 31, 2013 by iMFdirect
By Antoinette M. Sayeh
When meeting with people outside Africa, I’m often asked whether Africa’s growth takeoff since the mid-1990s has been simply a “commodity story”—a ride fueled by windfall gains from high commodity prices. But finance ministers and other policymakers in the region, and I was one of them, know that the story is richer than that.
In this spirit, in our latest Regional Economic Outlook: Sub-Saharan Africa a team of economists from the IMF’s African Department show that Africa’s continued success is more than a commodity story. In fact, quite a few economies in the region have become high performers without basing their success on natural resources—thanks in no small part to sound policymaking.
Filed under: Africa, Economic outlook, Economic research, Emerging Markets, Employment, Financial Crisis, growth, IMF, International Monetary Fund, Low-income countries | Tagged: agriculture, commodity prices, emerging market, Ethiopia, fiscal space, Mozambique, natural resources, regional economic outlook, Regional Economic Outlook: Sub-Saharan Africa, Rwanda, Tanzania, ugan, Uganda | 1 Comment »
Posted on July 9, 2013 by iMFdirect
By Olivier Blanchard
Today we released our update of the World Economic Outlook.
The world economy remains in 3-speed mode. Emerging markets are still growing rapidly. The US recovery is steady. And much of Europe continues to struggle.
There is however a twist to the story. Growth almost everywhere is a bit weaker than we forecast in April, and the downward revision is particularly noticeable in emerging markets. After years of strong growth, the BRICS in particular are beginning to run into speed bumps. This means that the focus of policies will increasingly need to turn to boosting potential output growth or, in the case of China, to achieving more sustainable and balanced growth.
What the Numbers Show
Filed under: Advanced Economies, Africa, Asia, Economic Crisis, Economic outlook, Emerging Markets, Europe, Finance, Financial Crisis, growth, IMF, International Monetary Fund, Latin America, Politics, recession | Tagged: China, euro zone, forecast, Japan, Olivier Blanchard, Russia, United States, WEO, World Economic Outlook | 3 Comments »
Posted on June 10, 2013 by iMFdirect
By Antoinette M. Sayeh
Sub-Saharan Africa is the second fastest-growing region of the world today, trailing only developing Asia. This is remarkable compared to the current complicated state of the global economy, with Europe still struggling and the United States slowly on the mend.
In 2012, Sub-Saharan Africa maintained solid growth, with output growth at 5 percent on average. The factors that have supported the region through the Great Recession—strong investment, favorable commodity prices, and generally prudent macroeconomic management—continued to be at play.
Filed under: Africa, Economic Crisis, Economic outlook, Emerging Markets, Employment, Financial Crisis, Français, growth, International Monetary Fund, Low-income countries | Tagged: Democratic Republic of Congo, Ethiopia, Ghana, growth, investment, jobs, Malawi, regional economic outlook, Sub-Saharan Africa, Tanzania, unemployment | 1 Comment »
Posted on March 28, 2013 by iMFdirect
By Antoinette M. Sayeh
(Versions in 中文, Français, 日本語, Русский, and Español)
For many years, countries in sub-Saharan Africa have spent large amounts on subsidizing fuel and electricity. For both sources of energy combined, this averages around 3-4 percent of GDP. That’s about the same magnitude as public spending on health in many countries. Now we need to ask some important questions. Is this a good use of scarce resources? Where does this money go? Is it helping to support the livelihood of the poorest in African economies? Is it helping to boost the country’s competitiveness? The answers are largely, no. I believe this money can and must be used better to invest in the critical physical and social infrastructure required to sustain growth in sub-Saharan Africa. A recent IMF paper backs this up.
Filed under: Africa, Emerging Markets, Finance, Fiscal policy, Français, growth, International Monetary Fund, Low-income countries, Politics | 1 Comment »