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January 17th, 2012

Africa and China: Will Africa be affected by the slowdown in China’s economic growth?

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Estimated reading time: 5 minutes

Blog Editor

January 17th, 2012

Africa and China: Will Africa be affected by the slowdown in China’s economic growth?

1 comment

Estimated reading time: 5 minutes

As China’s economic growth continues to slow down, should Africa be worried? LSE’s China-Africa expert, Dr Chris Alden gives his point of view.

We’ve been hearing today about China’s economic growth slowing even further at the end of 2011, triggered by the Asian country’s inflation and the plunge of European demand.

The fourth quarter’s growth of 8.9 % took 2011’s growth to 9.2% year-on-year, compared with 10.4% for 2010. Analysts predict that there is likely to be a more significant fall in growth in coming months.

What effect could this have on Africa into which China continues to plough money?

According to LSE’s China-Africa expert, Dr Chris Alden, Africa will only be affected if the slowdown reflects a reduction in demand for African resources and commodities. This is most likely to happen if there is a slowdown in China’s booming housing and infrastructure sectors.

However, Dr Alden doesn’t believe that there will be a drastic fall in orders for commodities, but rather a tapering off or a softening in commodity prices. Long term, it could result in a reduction of revenue for governments and even lead to some workers being laid-off.

 

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