Sovereign debt is being watched carefully across Africa as a prolonged commodity markets slump and a stronger dollar makes it more difficult for governments to keep up with their repayments.
On the kind of growth trends that emerging markets boasted 2000 -2009, it would take them only 30 years to catch up with the rich world, in terms of per capita wealth. Now, the projections put it at 300 years
Though the majority of African countries are in the clear, for those that are not, the data shows there is little relationship between national savings and national wealth, economic size, growth rates, or political stability.
The sovereign rating measures the risk of default on paying back foreign and/ or local currency debt that a government has either taken out directly, or guaranteed to pay. Botswana has the best rating, Zimbabwe the worst.
Zimbabwe’s inflation rate was 108,844% going by end-year data; the highest in Africa and the world, and one of the highest ever recorded.
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