Wednesday, October 15, 2014

China's Economic Slowdown to Impact Africa

The Overseas Development Institute (ODI), a UK-based think tank, published a paper in September 2014 titled "Developing Countries and the Slowdown in China" by Judith Tyson, Jane Kennan, and Zhenbo Hou. 

The report notes that the IMF and OECD forecast a slowdown in China's gross domestic product (GDP) to 7.0 percent for 2015.  ODI estimates a slowdown towards 5 percent in GDP growth from 2015 if decisive policy action is taken and below 4 percent if it is not. 

The African countries most negatively affected will be those with relatively high exports to China by value as a percent of total exports.  African countries that export 10 percent or more of total exports by value to China include Mauritania, Zambia, Congo Republic, Cameroon, Gambia, Benin, and Ethiopia.