It wasn’t all that long ago when virtually all of sub-Saharan Africa’s exports were destined for Europe and North America.
But the winds of Africa’s trade have shifted over the past decade. There has been a massive reorientation towards other developing countries, in particular China and India.
Like Janus, the Roman god, Africa’s trade is now, as it were, facing both east and west.
Our latest Regional Economic Outlook for sub-Saharan Africa looks closely at these developments and its policy implications.
In addition to the well-known gains from international trade, Africa’s trade reorientation is also beneficial because it has broadened the region’s export base and linked Africa more strongly to rapidly growing parts of the global economy. These changes will help reduce the volatility of exports and improve prospects for robust economic growth in Africa.
Filed under: Africa, Asia, Economic outlook, Emerging Markets, International Monetary Fund, Low-income countries | Tagged: China, commodity prices, export base, export diversification, exports, financial linkages, global financial crisis, IMF, iMFdirect, India, International Monetary Fund, market access, natural resources, social safety nets, trade, trade partners | 6 Comments »