Zambian born, London-based, economist Dambisa Moyo painted a gloomy picture for the world economy as she took the stage at the Mining Indaba in Cape Town.
Moyo, the author of several books who studied at Oxford University and Harvard, believes the United States could see three interest rate hikes this year and could be heading to recession by the end of 2018.
A bearish Moyo also believes that a growth in protectionism by the United States could hurt Africa and the rest of the world. The US has recently put up 144 trade protection instruments.
“In the 1930s the US put up 3,200 tariffs to block trade and this saw a decline in the economy and unemployment that it took a long time to come out of,” Moyo told more than 6,000 delegates in Cape Town.
Moyo also dismissed US President Donald Trump’s fiscal stimulus spending plans on infrastructure of $1 trillion.
“Japan spent $6.3 trillion on infrastructure but it did nothing for the economy either,” says Moyo, who believes that African mining is looking at tough times ahead.
“To quote Mark Twain: I believe when it comes to African mining reports of its demise are grossly exaggerated,” says Mark Cutifani, CEO of Anglo American.
” The last year has brought some reprive. We have emerged stronger than where we were before. If it’s not grown it’s mined. The world needs to be reminded this is an industry that contributes 45% of global economy. This week Cape Town is the centre of the world.”