Embracingdiversity

What will China’s G20 leadership mean for global and African growth fortunes?

Although it has been nearly a decade since the onset of the global financial crisis, a lack of confidence and general uncertainty are still sweeping the world economy. The recovery of world growth has been sluggish at best. World demand remains depressed. Trade growth has been stagnating as protectionism has increased. Tighter financial conditions persist, and coupled with lackluster capital flows, M&A activities have declined. Emerging markets are performing below their potential, and a low and volatile commodity price environment in particular has seen especially African resourceexporting economies weaken.

Add to this the recent shock and the possible repercussions of Brexit, and the upcoming presidential elections in the United States, continued downside risks to global growth persist. The World Bank predicts that the global economy will only expand by 2.4 percent this year. A report published by the bank in June 2016 noted that “another stretch of muted growth” lies ahead.

of the 10 key expected summit outcomes that were tabulated by China’s foreign Minister Wang yi earlier this year, at least seven either directly or indirectly affect african economies, whose growth trajectories have become closely aligned to China’s economic fortunes.

an Innovative, Invigorated, Interconnected and Inclusive World Economy,” the city of Hangzhou will host the G20 Summit on September 4-5, 2016.