adminconcerned because its economies are now more sensitive to any developments in China.
China has become the biggest investor in Africa and the continent’s most significant trading partner, so whatever happens in China matters a lot to Africa.
“A deceleration in the Chinese economy would spell trouble for African economies. This would mean weaker commodity prices, and African economies have largely been dependant on strong Chinese demand for its resources,” said Stevens.
He said while it was still a fat-tail risk, Stevens said African countries needed to start thinking seriously about how they would deal with the economic downturn in China.
Stevens’ comments come as fears of a downturn in the Chinese economy mount, with some analysts pointing to the strong possibility of a minus 7 percent GDP growth. — CAJ News.
Online Reporter