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Analysis For Globalization and International Trade In Sub-Saharan Africa
Sub Saharan African Countries may have edge in GDP growth over European countries in the near future.The inflation rate in Ghana (Along with South Africa it is one of he most promising markets) was last reported at 8.7 percent in January of 2012
Yet despite this boom in the economic status of developing countries in the east and Latin America, Africa has been slow to integrate with the world economy and suffering through a continuous decline in economic power since the 1960’s. Those countries that are unable to adapt will eventually be forced out of business because of the benefits of unrestricted foreign trade. In 1996 a report from the WTO World Trade Organization revealed that a majority of the countries on the African continent had less than 15% of their Gross Domestic Product GDP (which is one of the primary indicators of the health of a country’s economy representative of all its products and services within a given period) come from International trade in fact sub –Saharan Africa’s GDP average growth rate of 2.7 percent was higher than its 2.1 percent export.
“Growth in Sub-Saharan Africa rebounded sharply in 2010, supported by both the global recovery and developments on the domestic front: output is estimated to have expanded by 4.7 percent in 2010—up from the 1.7 percent in 2009—just
shy of its 5 percent pre-crisis (2000-2008) average growth. Slower growth in the region’s largest economy, South Africa (2.8 percent), dragged down overall regional growth in 2010. Excluding South Africa, GDP growth in Sub-Saharan Africa for
2010 is estimated at 5.8 percent, up from 3.8 percent in 2009, and above its pre-crisis average growth of 5.6 percent. Continuation of the global recovery and strengthening domestic demand—particularly in South Africa—are expected to boost Sub-Saharan Africa’s economic performance in 2011 and in 2012 with a GDP growth projected at 5.3 percent and 5.5 percent, respectively.”
Excluding South Africa, growth reached 5.9 percent in 2011 expected to settle at a 6.1 percent in 2012, placing Sub-Saharan Africa among the fastest growing developing regions.
This reflects well on its trade to purchasing parity and illustrates a definite need for integration with the world economy across countries.
Although many countries appear to be less integrated because a larger share of their input consists of services giving the impression that a large portion of their GDP is by nature non trade-able this could be rectified by focused structuring/
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Sunkwa International Inc of Atlanta’s is a non- profit fair trade organization.
Committed to ethical international business opportunity, Sunkwa encourages responsible business that reflects a desire to improve the communities in which we live & work.