Despite the historic low of China’s GDP growth in 2018, the new economic data published by the National Bureau of Statistics of China on January 21, 2019, has some calming influence on the African partners of this country.

According to data Ecofin Agency had access to, the country’s economy grew by 6.5% at the end of 2018, representing the lowest growth in the last 28 years. However, despite what may be seen as a counter-performance, this figure is similar to analysts’ forecasts. Therefore, it should have a relatively low impact on partners’ financial markets; notably the Johannesburg Stock Exchange in South Africa which is China’s leading commercial partner in Africa.

Some indicators also seem to demonstrate that China has withstood the trade war declared by the USA under Donald Trump’s presidency. Its industrial production grew by 5.7% in December 2018, higher than analysts’ forecasts even though it is far below the average monthly growth recorded in 2015.

It is also to be noted that the unemployment rate rose at a slower pace than in August and April (5.1%). The exposure of the world’s economy to China makes the Celestial empire one of the key economies to monitor.

Africa mainly takes advantage of China’s imports of commodities that are the expression of its production needs.

According to data published by the country’s customs, at the end of November 2018, China imported about $90.6 billion in value from Africa with $25.3 billion from South Africa. For the whole 2017, the figures were $75.4 billion for Africa including $24.3 billion.  

The Johannesburg Stock Exchange started this day, January 21, 2019 in the green with a rise of its main index (JSE All Shares Index) and some important ones like mining and financials that are very sensitive to changes in China’s economy.  

Idriss Linge