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Africa Set to Continue Growth – Except in Ebola-Infected Areas
World Bank figures are beginning to confirm the impact of the crisis on the economies of Guinea, Liberia and Sierra Leone.
New data shows the service sectors2 of the three countries have been especially hard hit. The Bank’s latest report, called Africa’s Pulse: Decades of Growth is Transforming Africa’s Economies, says wholesale3 and retail4 traders in Liberia report drops in business of up to 75 percent from the same period last year. It says gasoline and diesel5 sales in the country are down by 21 and 35 percent, respectively. And, since the on-set of the crisis, hotel occupancy across the three countries is down by 13 to 40 percent.
In Guinea, the exodus6 of people from farming areas has affected7 the production of exports such as coffee, cocoa and palm oil. The Food and Agriculture Organization says up to 40 percent of farmers in Kailahun, Sierra Leone, have moved or died. The World Bank says in total, the economic impact could mean the loss of potentially tens of billions of dollars in revenues for West Africa over two years (2014-2015).
Aversion behavior
Economists9 say the public and political response to Ebola is affecting economic activity in the three countries.
The FAO says about 90 percent of Sierra Leone’s most productive plots are not being farmed – due in part, it says, to the fear among farmers of sharing tools, and government restrictions10 on movement aimed at preventing the spread of the disease.
Some airports are closed as are the borders – which are crucial to merchants. Many people are afraid to go to West Africa’s hot and crowded markets, for fear of getting the virus. Ebola can be spread by bodily fluids from an infected person.
Sierra Leone and Liberia are recovering from long civil wars, and were bouncing back with growth rates approaching 10 percent.
Francisco Ferreira, the World Bank’s chief economist8 for Africa, says response to the virus has put an end to the optimism, at least for now.
"The fear it creates, the aversion behavior toward others, on farmers, miners, workers, consumers," he said, "that’s reducing GDP by two percent in Guinea, and 3.3 percent in Sierra Leone and Liberia -- which adds up to around $359 million this year."
Next year, he says, could be worse. If the outbreak is not controlled, affected countries could lose over $800 million.
In response, the World Bank is mobilizing a $400 million finance package for the three countries. The money will go toward providing emergency response equipment and building field hospitals and treatment centers. It will also help strengthen heath care systems, including monitoring of the outbreak. And the funding will provide general budgetary support for the Ebola-stricken countries which are redirecting scarce resources to fight the virus.
Projections11 of growth
The economic forecast for the rest of Africa stands in stark12 contrast to that of Guinea, Liberia and Sierra Leone.
Growth is projected for most African states – despite a drop in commodity prices and slow global economic growth.
The World Bank attributes economic expansion to public spending on infrastructure13, a buoyant services sector1 and a rebound14 in agricultural production for both export and domestic markets.
Punam Chuhan-Pole, the World Bank’s lead economist for Africa, mentions two low-income countries where growth has remained robust15.
"In Ivory Coast," she said, "it’s cocoa production, which is mostly for export, and also rice production [for domestic markets]. In Ethiopia, agricultural production has gone up…it is also supported in Ethiopia with spending in infrastructure. There’s a range of factors, but agriculture is a strong impetus16 to growth."
Chuhan-Pole said Africa is by-passing industrialization as a means of promoting growth and jobs.
Propelling the continent forward are services --- like tourism, transport, financing and telecommunications – and extractive industries, like the mining of oil, gas, metals and minerals.
"Extractive sector growth is something that has the potential to provide benefits to the rest of the economy, because it is a source of income," she said. "The important thing is how is income from extractives distributed?"
"To the extent that governments are able to get revenues from this and are able to redistribute it in terms of spending on health, education, and social programs to help poor people -- there are obviously benefits that can be derived17 from the extractive sector."
Those revenues could help Africa meet the UN’s ambitious Millennium18 Development Goals, which aim in part to improve child and maternal19 health and reduce poverty. The Bank says Sub-Saharan Africa has met only about a third of the target of cutting poverty in half for those with incomes below $1.25 per day. It says the continent has met only about half of the target set for improving nourishment20 and about a third on guaranteeing the completion of primary school.
The World Bank says the manufacturing sector in Africa is lagging, but can contribute to growth. Its economists say for the continent that means improving the business climate curbing21 fiscal22 deficits23, guaranteeing affordable24 energy, lowering transport costs and building a skilled labor25 force.
1 sector | |
n.部门,部分;防御地段,防区;扇形 | |
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2 sectors | |
n.部门( sector的名词复数 );领域;防御地区;扇形 | |
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3 wholesale | |
n.批发;adv.以批发方式;vt.批发,成批出售 | |
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4 retail | |
v./n.零售;adv.以零售价格 | |
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5 diesel | |
n.柴油发动机,内燃机 | |
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6 exodus | |
v.大批离去,成群外出 | |
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7 affected | |
adj.不自然的,假装的 | |
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8 economist | |
n.经济学家,经济专家,节俭的人 | |
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9 economists | |
n.经济学家,经济专家( economist的名词复数 ) | |
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10 restrictions | |
约束( restriction的名词复数 ); 管制; 制约因素; 带限制性的条件(或规则) | |
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11 projections | |
预测( projection的名词复数 ); 投影; 投掷; 突起物 | |
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12 stark | |
adj.荒凉的;严酷的;完全的;adv.完全地 | |
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13 infrastructure | |
n.下部构造,下部组织,基础结构,基础设施 | |
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14 rebound | |
v.弹回;n.弹回,跳回 | |
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15 robust | |
adj.强壮的,强健的,粗野的,需要体力的,浓的 | |
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16 impetus | |
n.推动,促进,刺激;推动力 | |
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17 derived | |
vi.起源;由来;衍生;导出v.得到( derive的过去式和过去分词 );(从…中)得到获得;源于;(从…中)提取 | |
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18 millennium | |
n.一千年,千禧年;太平盛世 | |
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19 maternal | |
adj.母亲的,母亲般的,母系的,母方的 | |
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20 nourishment | |
n.食物,营养品;营养情况 | |
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21 curbing | |
n.边石,边石的材料v.限制,克制,抑制( curb的现在分词 ) | |
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22 fiscal | |
adj.财政的,会计的,国库的,国库岁入的 | |
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23 deficits | |
n.不足额( deficit的名词复数 );赤字;亏空;亏损 | |
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24 affordable | |
adj.支付得起的,不太昂贵的 | |
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25 labor | |
n.劳动,努力,工作,劳工;分娩;vi.劳动,努力,苦干;vt.详细分析;麻烦 | |
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