Diverging Trade Dynamics

The boom then bust then reflation of the commodity complex has had a mixed effect on trade balances in sub-Saharan Africa. While all countries have benefitted from smaller energy bills as oil collapsed, the effect on the oil exporters has been severe. Similarly for those countries dependent on base metals and diamonds. With softs having held up better, many agricultural commodity exporters have seen a slowdown in the widening of their trade deficits, if not a gradual narrowing. As commodity prices improve over 2009 and 2010, trade deficits could begin to show signs of improvement.

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