Africa to defy global economic slowdown in 2013


Despite the global economic slowdown, Africa’s economic growth rate excluding Libya, will see a visible rebound to 4.5 percent in 2013 compared to the 3.4 percent in 2012, according to the World Economic Situation and Prospect report released by the United Nations.
The report states that one factor for Africa’s prospect of economic growth is trade ties between the continent and emerging economies such China and India.
The report stated that increasing diversification into services, telecommunication, construction and other non-primary commodity sectors, including manufacturing, also contributed to Africa’s positive growth outlook. Despite the positive growth, the report stated that the employment situation remains a major problem, both in terms of level of employment as well as the quality of jobs that are generated. Women unemployment rate has doubled in countries like Algeria and Egypt.
It was suggested at a press briefing session held at the UNCC on Friday 25th January 2013 that, African countries should try to export processed minerals instead of raw minerals. Almost all the time minerals are extracted and exported as raw materials. If African countries processed the raw materials domestically, they would be able to generate jobs for a lot of people.     
Concerning risk and uncertainty in the continent, aid flow to Africa might decline in 2013 and 2014 following the global economic crisis and fiscal difficulties in many donor countries.
Looking at the state of the global economy states, the report states that the economic crisis in the Euro Zone would continue to worsen and become more disruptive. The economies of large developing countries such as China, Brazil and India will also experience a hard landing.
It further states that there needs to be policy change. With the continuation of using the same policies, but assuming no worsening of the Euro crisis, the World Gross Product (WGP) would only grow by 3 per cent per year. That is far from sufficient from addressing the unemployment crisis or bringing down public debt ratio, states the report.