China's economic slowdown will not affect Africa's overall economic expansion in 2016, an economic expert said on Wednesday.
Standard Chartered Bank Africa Global Research Chief Economist Razia Khan told a media briefing in Nairobi that international trade has not traditionally been a determinant of economic growth in Africa.
According to the economist, China plans to maintain long term relations with Africa. "So, Chinese engagement with Africa will not change fundamentally even as its economy weakens," she said.
The Asian giant's bilateral trade with Africa has grown tremendously in the past decade. In 2015, China-Africa trade is expected to approach 300 billion dollars. The direct investment in the first half of 2015 hit 1.19 billion dollars.
The Standard Chartered official said that African countries with the biggest economies tend to be the most populous ones.
"That's why Nigeria and Ethiopia have the biggest economies in Africa," she said.
Khan said the fiscal deficits of most African states have widened since the end of the global financial crisis.
"Countries are getting more comfortable with larger deficits and this is reflected by the rising debt levels," Khan said. She stated that external debt vulnerability varies widely across the continent.
"The strengthening of the U.S. dollar has made payment of foreign currency denominated debt more expensive for some states," she said.
