"Asia's economies altogether accounted for 28 percent of Africa's total trade in 2008, more than double their share in 1990. Western Europe's share shrank during the same period, from 51 percent to 28 percent." // BusinessWeek// Image by Tambako the Jaguar via Flickr
This summer McKinsey & Co released a report focusing on growth in Africa. China is now emerging as the main foreign investor in the continents attractive recources, the result; collective GDP rising to 1.6 trillion USD in 2008 – roughly equal to Brazil’s or Russia’s.
Africa’s growth acceleration was widespread.
Future economic growth will be supported by Africa’s increasing ties to the global economy.
Africa’s economic growth is creating substantial new business opportunities that are often overlooked by global companies.
Today the rate of return on foreign investment in Africa is higher than in any other developing region.
The rise of the African urban consumer also will fuel long-term growth.
“While Africa’s increased economic momentum is widely recognized, less known are its sources and likely staying power. Among the key points:
“The biggest business opportunity of the four lies in consumer goods and services, followed by natural resources, agriculture, and infrastructure.”
Definently time for the OECD countries to support this strong development by trading more with the region. How? Start by cutting tariffs and subsidies in the domestic agriculture sector. Navigate to the full report and details: Lions on the Move: The Progress and Potential of African Economies.
[via BusinessWeek & McKinsey]
Read the executive summary (PDF – 1.76 MB)
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Scott Grannis continues to stay optimistic after today’s downward revision to second quarter GDP:
“Regardless, it remains the case that profits have more than doubled since 1998, while the S&P 500 has not budged, on balance, over the past 12 years. As I’ve been arguing for a long time, the equity market looks very undervalued to me. Perhaps that’s because, like the bond market (see my post from yesterday), the equity market believes the future will be very grim.”
Read the rest of his thoughts: Corporate profits are very strong.
[via Calafia Beach Pundit]
“Meanwhile, of course, growth across the overall United States economy has been lackluster, slowing down significantly in recent quarters. And while companies may be sitting on mountains of profits, they have still been reluctant to use those profits to hire additional workers.”
[via BEA & Economix]
Readers of The Wall Street Journal are not that confident: