African commodity prices to benefit on positive China economic outlook: Stanchart

ACCRA - Standard Chartered Bank is predicting a boom in China's economic growth for 2017, Razia Khan, Chief Economist for Africa at the Standard?Chartered Bank, said here on Thursday.

Addressing the media here on developments in the global economies, Khan said this growth, which was likely to create demand for more commodities, would also have positive impacts on African commodities.

"China in 2017 will see its first year-on-year growth acceleration since the global financial crisis... For African economies, this is going to be meaningful," she indicated.

"We might see good rates of growth this year; we expect Chinese growth to slow to a more sustainable pace going forward. What is important for Chinese policy makers will increasingly be the quality of that growth," she said.

On the impact of this growth on African economies, she said significant impact would be seen as more commodities would be needed from Africa.

Khan projected a further growth of China's middle-income class explaining that as China becomes a richer economy, and as incomes grow, commodity demand would also come to the fore.

"What happens now is that as China becomes a richer economy and per capita incomes rise, even if the growth rates are not going to be in double digits... we still think there's going to be substantial demand for the commodities that Africa produces.

"We still believe that China's intentions in the region are very much long-term , very carefully considered, very strategic and this is going to be a strong support for African growth," Khan added.