GDP tells us nothing about health of an economy, let alone its sustainability and the overall impact on GDP is simply a measure of market consumption, which has been improperly adopted to assess economic performance. Rebuilding Libya after the civil war has been a blessing for its GDP. But does that mean that Libya is on an enviable growth path? When there is only one brick left in a country devastated by war or other disasters, then just making another brick means doubling the economy (100 percent growth). Another problem is the reliability of GDP statistics in Africa. Economic growth figures for most African countries are incomplete, thus undermining any generalisation about overall economic performance in the continent. Besides statistical problems, there are important structural reasons why one should be suspicious of the ‘Africa rising’ mantra. Most fast- growing Africa economies are heavily dependent on exports of commodities.
Posted on: Fri, 28 Mar 2014 08:55:03 +0000
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