Economic and social developments in Africa and medium-term prospects

The world economy showed signs of decelerating in 2012, threatening the pace of the recovery from the global financial and economic crisis of 2008–2009. The euro area, Africa’s biggest economic partner, headed for another recession with lingering worries over mounting sovereign debts and fiscal sustainability. Emerging economies, such as China and India, saw notably slower activity. Prospects of an early exit from the turmoil are clouded by uncertainty over the euro area sovereign debt crisis, fiscal consolidation in major world regions and the brinksmanship of negotiations over the “fiscal cliff” and debt ceiling in the United States (US). They have induced downside risks in an already fragile global economy.

Related Subject(s): Economic and Social Development