|
|
Article: Gold remains solid as other metals melt; The collapse in metals prices has already had a severe impact on the fortunes of major exporters. With a recent major IMF report slashing its expectations for global growth from a modest 2.2% to a mere 0.5%, there seems to be little hope of a swift recovery in demand. M J Morgan examines the causes, effects and the likely consequences for African producers.(METALS)
- Article from:
- African Business
- Article date:
- March 1, 2009
- Author:
CopyrightCOPYRIGHT 2009 IC Publications Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
At the World Economic Forum (WEF) meeting in Davos, former UN Secretary-General, Ghanaian Kofi Annan, warned, "Africa had nothing to do with the sub-prime crisis but we are all going to be affected."
The impact of falling commodities prices in general, and particularly base metals, has already led to the mothballing of existing mines, the shelving of investment in new projects and has led to increasing pessimism about the continent's prospects.
A recent report cut the growth forecast of several nations reliant on commodity exports to 3.7% this year, down from 7.1% last year, with a corresponding move from current account surplus to deficit.
...