{"id":13574,"date":"2012-08-16T14:51:31","date_gmt":"2012-08-16T12:51:31","guid":{"rendered":"http:\/\/www.myza.co.za\/08\/text-sp-china-rebalancing-a-risk-to-sub-saharan-africa\/"},"modified":"2012-08-16T14:51:31","modified_gmt":"2012-08-16T12:51:31","slug":"text-sp-china-rebalancing-a-risk-to-sub-saharan-africa","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/text-sp-china-rebalancing-a-risk-to-sub-saharan-africa\/","title":{"rendered":"TEXT-S&P: China rebalancing a risk to Sub-Saharan Africa"},"content":{"rendered":"

\t\t<\/span><\/p>\n

(The following statement was released by the rating agency)<\/span><\/p>\n

<\/span><\/p>\n

Aug 16 – China’s economic rebalancing from an investment-led to a more consumer-led economy
\npresents serious risks for sub-Saharan African (SSA) countries, but also some opportunities,
\nsays Standard Poor’s today in the report “For Sub-Saharan Africa, China’s
\nRebalancing Poses Risks And Opportunities”.<\/p>\n

<\/span><\/p>\n

Many SSA countries have grown strongly on the back of China’s boom over the
\npast two decades because it exported commodities such as metals and oil to
\nfeed China’s rapid investment expansion. But now that China’s economy is
\nrebalancing away from investment and exports toward consumption, this could
\nhave significant consequences for commodity markets and SSA
\ncommodity-producing countries, the report says.<\/p>\n

<\/span><\/p>\n

“These risks relate first to the timing of the adjustment in China,” said
\nStandard Poor’s EMEA chief economist. “A rapid shift could cause a steeper
\ndecline in China’s overall GDP and import growth rates, leading to a fall in
\nSSA commodity exports to the country.”<\/p>\n

<\/span><\/p>\n

The risks also relate to the changing composition of China’s imports, the
\nreport says. The boom in capital spending, especially in infrastructure and
\nconstruction, led to a particularly strong increase in imports of metals and
\nminerals. Those countries likely to be most affected by the shift to a
\nconsumer-led economy are therefore the Democratic Republic of Congo (DRC),
\nZambia, and South Africa, the main SSA exporters of mining commodities.
\nConversely, exporters of agricultural products, such as Ghana and Congo, may
\nnot see much of a change, and could even benefit from the Chinese transition.
\nOil exporters–Congo, Nigeria, Angola, and Cameroon–could also be less
\naffected in the short term, in our opinion, because Chinese demand for energy
\nproducts will continue to be underpinned by the growth in its domestic auto
\nmarket.<\/p>\n

<\/span><\/p>\n

“Nevertheless, we anticipate that China’s rebalancing will also offer new
\nopportunities for SSA economies that are able to expand their consumer goods
\nexports,” said Mr. Six. “South Africa is an example of an economy that has
\nsucceeded in increasing its exports of consumer goods, especially to China, in
\nrecent years.”<\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

(The following statement was released by the rating agency) Aug 16 – China’s economic rebalancing from an investment-led to a more consumer-led economy presents serious risks for sub-Saharan African (SSA) countries, but also some opportunities, says Standard Poor’s today in the report “For Sub-Saharan Africa, China’s Rebalancing Poses Risks And Opportunities”. Many SSA countries have […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-13574","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=13574"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13574\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=13574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=13574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=13574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}