As the Eurozone slips into Recession what are the implications for Africa As the Eurozone goes into Recession, should other regions of the world be alarmed or concerned? Truth is the world economy is a system and in this system there are a lot of political issues in the economy. One such issue is that once there is a shock or imbalance in terms of volumes of growth and trade, there arises a ripple effect. This ripple effect like a wave affects everyone that is connected. So yes Africa should be concerned that the Eurozone has gone into Recession, even…
Author: Rilwan Omar Massoud
“Sub-Saharan Africa could stand to lose the most if the world were split into two isolated trading blocs centered around China or the United States and the European Union. In this severe scenario, sub-Saharan African economies could experience a permanent decline of up to 4 percent of real gross domestic product after 10 years according to our estimates—losses larger than what many countries experienced during the Global Financial Crisis”. The above is the introduction to a piece from the IMF on the future of Sub Saharan Africa in the event of great economic and sociopolitical changes in the world order.…
The digitization of trade is one of the most important factors that can ensure the success of the AFCTA’S intra African trade regime. This is because African countries of different backgrounds and orientations do not yet have a single currency to call their own as it is be-known to the EU. Digitization of trade means that currency conversion amongst others is automated and the international currency valuations are easier reflected in transactions. Also for the fact that this is the latest trend in ensuring that the positive outcomes of globalisation will be localized in regards to Africa, mainly means the…
In addendum to what I wrote a week ago about the American stimulus plan http://www.thenews-chronicle.com/the-american-stimulus-plan-in-action-model-for-developing-countries/, here’s another take. Biden must be lauded as a genius and also a progressive. Perhaps that’s what the democratic party stands for. Progressive investments in the economy, cash injections, engaging the private sector more and opening up the american market for FDI flows. The result, an astronomical rise in the number of jobs created better than any American President in history. This means better standards of living and prosperity for Americans and also more prospects for dreamers of moving to America and contributing their…
The graph above shows a quick and huge bounce back for the United States GDP after the pandemic shock on global economy. This is how you get it right strategically. A rich country with good leadership can easily negotiate its way back to the top of growth levels (GDP), with the right cash injection into the economy. Jobs are created, industries are rejuvenated, and health care is more affordable to the middle class as well as lower classes. Can developing countries learn? Certainly they can, but albeit with the caveat that they can avoid as much corruption and bottlenecks…
The facts are there, Nigeria’s economy has never witnessed sustained growth better than under former president Olusegun Obasanjo. In 1999 under his first term growth was only at the rate of 0.58%, but by 2002 we were experiencing growth rates of 15.33%. Even China did not record such breakneck speed of growth, and then, there are the reforms and the management of foreign reserves. Also, there was the debt servicing of which at a point towards the end of his 2nd tenure when close to 0 Naira was recorded as debt profile of the country. Closest to sustained growth in…
