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28 Jan 2015
Slowdown in China likely to hurt African economies - IMF's Lagarde
FXStreet (Mumbai) - International Monetary Fund (IMF) managing director Christine Lagarde warned of potential negative impacts of a slowdown in China's economy and a hike in US interest rates on African economies, while paying a visit to Rwanda.
"Momentum is slowing in many advanced and emerging economies, including China - one of Africa's main trading partners,"
Shifting focus to the monetary policy normalization in the US, she said, "Even if this process is well-managed and well-communicated - and I believe that it has been and will be - there could be negative effects for emerging markets and global financial stability. African economies could also be impacted."
On January 21, the IMF revised its growth forecast for sub-Saharan Africa down to 4.9% from 5.8% in 2015, and South African growth has been reduced to 2.1% from a previous 2.3%.
"Momentum is slowing in many advanced and emerging economies, including China - one of Africa's main trading partners,"
Shifting focus to the monetary policy normalization in the US, she said, "Even if this process is well-managed and well-communicated - and I believe that it has been and will be - there could be negative effects for emerging markets and global financial stability. African economies could also be impacted."
On January 21, the IMF revised its growth forecast for sub-Saharan Africa down to 4.9% from 5.8% in 2015, and South African growth has been reduced to 2.1% from a previous 2.3%.