China’s two-decade economic sprint is sputtering, with potentially far-reaching implications for global development.
If Chinese lending declines, sub-Saharan Africa’s ability to raise financing will be deeply affected. Reductions in Chinese aid could result in the cancellation or delay of infrastructure projects, hampering economic growth. So how can global cooperation step up?
China’s economic slowdown is linked to inflation and fears of global recession due to the COVID-19 pandemic and Russia’s war in Ukraine. China’s domestic challenges are another factor, including soaring local government debt, which currently stands at $9.5 trillion, and a cratering real estate sector. While some observers anticipate a turnaround in 2023, a diminished China would have ruinous impacts on the world’s most vulnerable countries.
About the author
Robert Muggah
Robert Muggah is a co-founder of the SecDev Group and the Igarapé Institute. He is also a faculty or fellow at Princeton University, Singularity University, the Chicago Council on Global Affairs and the World Economic Forum. He is a co-author of the book “Terra Incognita: 100 Maps to Survive the Next 100 Years,” published by Penguin/Random House.
