According to the World Bank (WB), Southern African countries will be hit hard by any further worsening of the European Union's financial crisis, as well as an economic slowdown in China. The latest WB global economic report states that if global growth weakens, commodity prices could decline, hitting the region's exporters of industrial raw materials, such as metal and cotton, and tourism-dependent economies hard.
It further says that in a crisis situation, weaker capital inflows, remittances and aid inflows could also decline sharply – potentially compromising macro-economic stability. Accordingly, Masimba Kuchera, from the Zimbabwe Coalition on Debt and Development, has noted that lack of export earnings and remittances from Europe would cripple Zimbabwe.
Source: Voa News