Chinese Rebalancing and African Growth.pdf

     

    The following policy paper was presented in the WB PSIA BBL series,  highlighting findings from an analysis that explores the economic impacts of China’s expected transformation – a changing rate of economic growth and a rebalancing away from investment toward consumption – on Sub-Saharan Africa.

     

     

    Although economic engagement with Africa has been a priority for Chinese policy makers since the 1990s, China’s economy is undergoing significant changes. The 12th Five Year Plan recognizes that the annual growth in excess of 10 percent (average over 2003‐2010) is unsustainable in the long run and envisages the growth rate of 7 percent a year. With this reality, we will explore the economic impacts of China’s new growth and what this means for Sub-Saharan Africa. Second, we will separately consider the impacts of China’s rebalancing by providing an in‐depth examination of the driving forces of the expected benefits and losses and shedding light on potential areas of policy intervention.