Economic Growth In Africa Case Study

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Distinguish and discuss the different phases of economic growth in Africa since the 1960s. What accounts for the differences?
Africa's economic history has been characterized since independence by wide fluctuations. Broadly speaking, the continent has experienced two periods of growth: first, between 1961 and 1975 and a second from 1995 to the present, with stagnation in between. Given the protracted economic stagnation, and the continent's low economic output in comparison with other regions of the world, Africa seemed doomed to persistent under-development. Hypotheses of the cause of this bleak forecast often cluster around three factors – geographical conditions, the slave trade legacy, and colonization. The assumption is that one of these …show more content…

The growth of the services sector also played a major role. At the turn of the millennium, Africa entered a period of sustained and impressive growth, with some of its countries among the fastest growing economies in the world. The continent proved resilient in the aftermath of the 2008 financial crisis due to two factors: a good fiscal situation; and low economic interconnectivity with the rest of the world. However, the fiscal situation has again deteriorated, and the region is characterized by 'twin deficits' (current account deficit and government budget deficit) instead of the twin surpluses which formerly helped the continent to withstand the financial crisis. Debt levels in certain countries are approaching risk-factor …show more content…

The World Bank report 2015 on SSA, 'Africa's Pulse' shows economic slowdown in Sub-Saharan Africa, with growth decreasing in 2015 to 3.7% from 4.6% in 2014. The end of the commodity price super cycle (significantly affecting oil, copper and iron ore), the slowdown of the Chinese economy, and tightening global financial conditions are all slowing down the economy. The 2015 growth rate will be the lowest since 2009. Growth is expected to pick up gradually again in 2016 and 2017, pushed up by domestic demand generated by consumption, investment, and government spending. Lower commodity prices will most affect the less diversified oil exporters (such as Angola and the Republic of Congo) and other commodity exporters (Democratic Republic of Congo and

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