Monday, December 26, 2011
Africa a bright spot in growth
There has been so much focus on the lack of growth in developed countries there has been little time spent on the growth in Africa which continues to shine. The growth in Africa outside the sub-Sahara has been generally above 4% and has reached level above 8% for a number of countries over the last four years.
A significant part of this growth is associated with the general increase in commodity prices, but there has strength in many sectors with productivity gains significant and income distribution differences closing. The largest concern is that a decline in commodity prices will lead to an African slowdown; however, there is more investment dollars spent in the last few years to offset a flat price environment. There are still many problems but there is the chance for real gains for the population if this growth continues. Africa is still a small portion of world GDP but growth in this part of the world is not something to ignore.