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pre-crisis growth rates

The Nuts and Bolts of Trade: Stepping up to Manufacturing in the Development Ladder

John Wilson's picture

With the global recovery slow to pick up speed, the latest World Economic Outlook (WEO) isn’t exactly an uplifting read. However, for those of us with an eye on the developing world there are some bright spots: the low-income-countries (LICs) in Africa, for example, have returned to their pre-crisis growth rates and their economies are expected to expand by a respectable 6.5 percent in 2012. 

Despite this seemingly good news, there are some dark clouds on the horizon. The WEO attributes the quick rebound to the fact that the African LICs were, “largely shielded from the global financial crisis owing to their limited integration into global manufacturing and financial networks.”  Although limited international exposure is a boon in the short-term, it also signals trouble down the road.