Africa: Surprising Economic Path for the "Forgotten Continent"?

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Africa: Surprising Economic Path for the "Forgotten Continent"?
Economic Growth Where You Might Not Expect to Find It

By Bob Stokes
Wed, 09 Feb 2011 17:00:00 ET

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Turmoil in northern Africa has made headlines, specifically the huge political protests in Tunisia and then Egypt. Yet you may be surprised by the less tumultuous trend that's unfolding today in other parts of the "forgotten continent."

Economic growth!

In fact, some parts of Africa have been growing faster than the much ballyhooed growth-rate of China!

"...over the past 10 years, no fewer than six of the world's 10 fastest growing economies were in sub-Saharan Africa."

Elliott Wave Asian-Pacific Financial Forecast, February 2011

The story doesn't end there. The Economist projects that the GDP growth of African countries will outpace Asian countries over the next several years -- see the chart below (published Jan. 1, 2011):

Economic stagnation had plagued much of Africa for decades. So even though the economic projection is northward, the continent started its upward climb from a low place. It still has a long way to go before coming close to economic parity with Asia.

"In 1980 Africans had an average income per head almost four times bigger than the Chinese. Today the Chinese are more than three times richer."

The Economist

Even so, the increase in China's wealth may actually help stimulate Africa's economic growth. According to a recent African Development Bank report, Africa's financial policymakers are actively seeking to learn "how African countries could increase their participation in institutions such as the International Monetary Fund (IMF) and the World Bank, as well as global political groups such as the Group of 20."

The same report observed: "South Africa, Nigeria and Kenya were highlighted as the three countries expected to help spur Africa's recovery on the back of improved global demand."

South Africa's Johannesburg Stock Exchange All-Share Index is the oldest stock exchange on the continent. And the February Asian-Pacific Financial Forecast provides you with a revealing wave analysis of the Johannesburg's index, as well as other African "lion" markets.

This latest issue also covers China, Hong Kong, Singapore, India, Japan, Korea, Australia, Taiwan and yes, Egypt -- and even includes Elliott Wave analysis of Iran's market.

Reading the February Asian-Pacific Financial Forecast is risk-free. Follow this link and you can have this valuable resource on your computer screen in moments.

Tags: Chinese markets, Elliott Wave Principle, International Monetary Fund (IMF), Shanghai Composite Index

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