Time to rethink our view of Africa's economy: Steven Schultz, Head of International Fund Solutions, MMI

A construction worker walks on a scaffolding on a tunnel along the Nairobi-Thika highway project, under construction near Kenya’s capital Nairobi, September 23, 2011. REUTERS/Thomas Mukoya

Seven years have passed since the implosion of the global financial system and the largest bankruptcy filing in history – Lehman Brothers.

Since the onset of the global financial crisis, the world economy seems to be stuck in a subdued, volatile recovery.

Restrained consumer demand, which is a consequence of stagnant or falling wages, appears to be at the epicentre of today’s tepid global growth.

With consumer spending arguably the most influential contributor to the global economy, prolonged weakness in the world’s labour market has the potential to disrupt the global community’s quality of life, regardless of whether people are rich or poor.

It is against this uninspiring growth backdrop that buoyant equity markets are uniformly recording record highs.

There should be little doubt that central bankers’ expansion of the frontiers of stimulus through monetary policy has given rise to this peculiar situation.

Read more: Time to rethink our view of Africa’s economy? – Agenda – The World Economic Forum