Macroeconomic Management in the World Economy - An Exploratory Note on Africa

Abstract

In the 1980s, the focus in economic management in Africa shifted towards macroeconomic stabilization policies. This led to the neglect of sectoral policies and microeconomic reforms, which are critical for industrialization and diversification. In line with this, the African economies continue to sustain the growth momentum for the past few years. However, most African countries’ real growth rates have remained low relative to their development goals. Improved economic management and increases in non-oil commodity prices have more than offset the negative impact of high oil prices on the real GDP of African oil importing economies. African countries also continue to face the challenge of other deadly diseases, especially malaria and HIV/AIDS, remained as the deadly killer diseases in the continent. This paper explores macroeconomic imbalances in the global economy. It delves the recent developments that occurred in the African economy in recent years. It also emphasizes certain diversification policies which are pertinent in the development of African economies.

Keywords: Macroeconomic imbalances, World Economy, African Economy, Diversification, growth policies, external debt

JEL Classification: E2, F31, H11