Being positioned on the fringes of a global economy navigating the worst economic downturn in 60 years is the good news for sub-Saharan Africa. Sub-Saharan Africa has less of a cushion than other parts of the world. As the overall global economy heads for a 1.7% contraction this year and the economies of the Organization for Economic Co-operation and Development face the prospect of a 3% decline, sub-Saharan Africa is still expected to grow, although much less than in 2008. According to the World Bank, the region will see economic growth of 2.3% in 2009 -- less than half the 4.9% increase of 2008 and 1.8% points below earlier projections. An emerging economy like South Africa falls into its own category, and its downturn, exacerbated by its greater dependence on credit and stronger links to the international financial system than the rest of sub-Saharan Africa, has hurt the southern African region.
AFRICA IN A SQUEEZE Paula L Green Global Finance; May 2009; 23, 5; Docstoc pg. 18 Reproduced with permission of the
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