China's Economy is Slowing and That's Really Bad News for Africa

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Manage episode 223370021 series 108224
By The China Africa Project, Eric Ol, er, and Cobus van Staden. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Pretty much every major economic indicator suggests that the Chinese economy will continue its downward momentum in 2019. Industrial production, retail sales, and even the once red-hot property market are all showing real signs of weakness. Some economists even believe that economic growth in China next year will even fall below the psychologically important six percent level.

This is all potentially very troubling news for Africa that is becoming increasingly dependent on the Chinese market to buy its resources and as the primary source of investment capital. And in several African countries, the value of local currencies is effectively linked to Chinese economic data. The South African rand, for example, is valued in line with almost everything that happens in the Chinese economy.

This shouldn't come as a tremendous surprise given China's outsized role in South Africa and as Africa's predominant trading partner.

Beijing-based economist Jeremy Stevens closely studies the Chinese economy and its impact on African risk for his clients at Standard Advisory China, a unit of Africa's largest bank Standard Bank. He joins Eric this week to discuss the Chinese economic outlook for 2019 and what the implications are for Chinese trade and investment with Africa.

Join the discussion. Are you concerned about what will happen if China's economy begins to slow and Chinese slow their buying of African exports? Or do you think this is a good opportunity for Africans to wean themselves from being too dependent on the China market and Chinese loans in particular? Let us know what you think.

Facebook: www.facebook.com/ChinaAfricaProject Twitter: @eolander | @stadenesque Email: eric@chinaafricaproject.com If you would like to subscribe to Jeremy's excellent Inside China email newsletter, please email him directly: jeremy.stevens@standardbank.com.cn And if you would like to join our weekly email newsletter mailing list for a carefully curated selection of the week's top China-Africa news. Sign up here.

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