The Impacts of the Global Recession of 2008-2009
The world recession of 2008 to 2009 was caused ultimately by global imbalances in trade and capital flows, globalization of financial markets, the trend towards a new finance-led capitalism and the related pattern of income distribution. The effects of the recession on Africa were tremendous and are still being felt today. Africa is homeland to numerous natural resources. Contrary to this, it is one of poorest regions in the world constituting almost 10% of the world’s population and ravaged by high crime rates and the HIV and AIDS pandemic. The worldwide economic crisis of late 2008 and 2009 made significant economic and social developmental challenges for African countries. Even if the impact of the economic crisis on Africa was expected initially to be less severe, its challenges have now been estimated to be profound. The profit Africa gained from the exports and imports of natural resources and commodities has reduced substantially. Trade with China and the United States of America became significantly feeble. Interestingly, the outcome of the recession seems to vary from country to country. However, there have been common economic impacts seen from those countries which participate in large scale exportation. Therefore, this essay serves the main purpose of identifying the impacts made by the recession on Africa. These aspects include, impacts made on the tourism, agriculture, hospitality, banking, health, oil and mining sectors. In addition, it identifies the effects on the economy namely, global trade, foreign direct investment, remittances, foreign aid flow and over above this, the exacerbation of poverty as well the positive impacts and changes the recession brought.
To make a start with this subject, the consequences of the global economic crisis have been manifold. The crisis has brought a profound economic decline in the economies of African countries and the growth rates have dropped. Furthermore, the impacts brought about by the recession hit all
To make a start with this subject, the consequences of the global economic crisis have been manifold. The crisis has brought a profound economic decline in the economies of African countries and the growth rates have dropped. Furthermore, the impacts brought about by the recession hit all
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