Africa to take four out of 10 slots for fastest growing economies globally
Four of the world’s top 10 fastest growing economies in 2015/16 are forecast to be in Africa as global economic growth momentum remains below pre-crisis period. PHOTO | FILE
What you need to know:
- Ethiopia, Democratic Republic of the Congo, Côte d’Ivoire and Mozambique are among the top ten fastest growing economies, shows a report released last week by rating firm Moody’s.
- The disparity in growth means sub-Saharan Africa will take more than three centuries to reach wealth parity with North America and Western Europe.
- Moody’s report now dampens an earlier survey conducted by Bloomberg Business which had put Kenya third in the top 20 fastest growing economies in the world this year.
Four of the world’s top 10 fastest growing economies in 2015/16 are forecast to be in Africa as global economic growth momentum remains below pre-crisis period.
Ethiopia, Democratic Republic of the Congo, Côte d’Ivoire and Mozambique are among the top ten fastest growing economies, shows a report released last week by rating firm Moody’s.
“The global economy continues to expand, but remains below pre-crisis levels and is uneven across regions. Sub-Saharan Africa and Asia Pacific have the highest investment levels worldwide as wealth disparity between regions remain substantial in the emerging markets,” Moody’s said in Global Sovereign Statistical Trends report.
The disparity in growth means sub-Saharan Africa will take more than three centuries to reach wealth parity with North America and Western Europe.
HEAVILY INDEBTED
Asia Pacific region boasts of the highest investment rates globally and has experienced an increase in this ratio relative to pre-crisis levels. Currently, China has the highest ratio of investment-to-GDP, followed by Mongolia.
Africa has also seen its share of investment in the economy rise before and after the economic crisis of 2008-2009. Gabon, for example, has recorded 41 per cent of investment-to-GDP ratio, a significant increase from 2008-09 levels.
In March, the World Bank’s Kenya Economic Update rated the country as one of the fastest growing economies in Africa buoyed by falling oil prices.
Moody’s report now dampens an earlier survey conducted by Bloomberg Business which had put Kenya third in the top 20 fastest growing economies in the world this year.
Meanwhile, in Eastern Europe and Central Asia, investment shares have decreased, a likely spillover of the protracted crisis in the euro area.
In Middle East, North Africa, Latin America and the Caribbean, the shares of investment in the economy remained fairly flat between the two periods.
No Africa countries however feature among the most indebted nations in the world where Japan tops followed by Greece, Italy, Lebanon and Portugal in the top five.
Egypt and Ghana are however among the top five countries with the heaviest interest burdens
