Macroeconomic Performance of IGAD and the Implications of China's Economic Slowdown
The Inter-Governmental Authority on Development (IGAD) as one of the relatively newly constituted regional block is composed of diverse countries with varied economic structures and agro-ecological zones. Member states (that includes Djibouti, Eritrea, Ethiopia, Kenya, Somalia, Sudan and Uganda) also vary in terms of population sizes ranging from the second most populous country in Sub-Saharan Africa (Ethiopia) to a country with a population of less than a million (Djibouti). The state of security in each of the countries is also mixed ranging from relatively stable states to others engulfed with political turmoil. The levels of development as measured by income also vary ranging from Least Developed to Middle Income countries. As a whole, the IGAD region lags behind other Regional Economic Communities (RECs) in the continent or elsewhere measured in terms of income level attained to date, the level of trade flows (global and regional) registered, the economic diversity of the countries, the level of financial depth and the economic efficiency with which the economies of the region operate. This issue will be discussed in relation to the performance of the global economy in general and the economic slowdown in China in particular in Part II of this report, suffice it to say here that the current state of these economies are both weak and vulnerable to external and instability and various natural or man-made shocks.