Source: McKinsey Quarterly
Bright light in Africa:
In the 1990s, the picture improved. The wars started subsiding. Many governments balanced their budgets and created a better, safer environment for companies, both foreign and domestic. And the African consumer began to stir. Now 80 million households earn at least the equivalent of $5,000 annually, the point where discretionary spending commences—an increase of 80 percent in eight years. Meanwhile, the continent’s GDP has been rising steadily, at around 5 percent a year, for the past decade, reaching $1.6 trillion in 2008. Last year, Africa was one of just two regions (the other was Asia) where GDP rose.