Great Recession in Africa

Overview of the impact of the Great Recession in Africa

Great Recession
Part of a series on the
Major aspects Subprime mortgage crisis 2000s energy crisis 2000s United States housing bubble 2000s United States housing market correction 2007–2008 financial crisis 2008–2010 automotive industry crisis Dodd–Frank Wall Street Reform and Consumer Protection Act European debt crisis
Causes Causes of the European debt crisis Causes of the 2000s United States housing bubble Credit rating agencies and the subprime crisis Government policies and the subprime mortgage crisis
Summit meetings 34th G8 summit (July 2008) G-20 Washington summit (November 2008) APEC Peru (November 2008) China–Japan–South Korea trilateral summit (December 2008) G-20 London Summit (April 2009)
Government response and policy proposals 2008 European Union stimulus plan 2008–2009 Keynesian resurgence American Recovery and Reinvestment Act of 2009 Banking (Special Provisions) Act 2008 Chinese economic stimulus program Economic Stimulus Act of 2008 Emergency Economic Stabilization Act of 2008 Federal Reserve responses to the subprime crisis Government intervention during the subprime mortgage crisis Green New Deal Housing and Economic Recovery Act of 2008 National fiscal policy response to the Great Recession Regulatory responses to the subprime crisis Subprime mortgage crisis solutions debate Term Asset-Backed Securities Loan Facility Troubled Asset Relief Program
Business failures American International Group Chrysler Citigroup Fannie Mae Freddie Mac General Motors Lehman Brothers Royal Bank of Scotland Group UBS
Regions Africa Americas South America United States Asia Europe Oceania
Timeline
v t e

As a direct result of the late 2000s recession, some economies in Africa have been primarily affected by reduced global demand and lower prices of commodities such as oil, platinum, nickel, gold, and copper. South Africa was the first African country to fall in recession. Other countries like Morocco and Egypt, which benefited from their previous high economic growth experienced a great decline due to the global economic crisis without falling in recession.

South Africa

Moody's Investors Service warned on July 7, 2008 that South Africa could slip into a recession by the turn of the year. Moody's cited electricity shortages, high interest rates, soaring inflation, a slumping housing and vehicle market and lower business and consumer confidence indicators. Growth in South Africa's real gross domestic product for the first quarter of 2008 slowed to 0.39%. CPIX inflation, the monetary-policy inflation target measure, rose 10.9% on a year-on-year basis in May, its highest level since November 2002.^[1] South Africa's National Treasury criticized the statement by Moody's saying, "It's not possible that we'll end up in recession." He added that the government may revise lower its 4 percent growth forecast for the year following growth of 5.1% in 2007. Car sales in South Africa dropped an annual 22 percent in June due to higher interest rates.^[2]

References

^ "Moody's says South Africa may slip into recession". Market Watch. 2008-07-07. Retrieved 2008-07-19.
^ "South Africa Says Moody's Recession Claim `Alarmist'". Bloomberg. 2008-07-09. Retrieved 2008-07-19.

External links

ILO Job Crisis Observatory

v t e Economic expansions and recessions in the United States and Commonwealth of Nations countries
Aggregate demand/Supply Effective demand General glut Model Overproduction Paradox of thrift Price-and-wage stickiness Underconsumption Business cycle Deflation/Inflation Chronic Classical dichotomy Disinflation Money supply/demand Neutrality of money Price level Real and nominal values Velocity of money Economic expansion Recovery Stagnation U.S. expansions Interest rate Nominal interest rate Real interest rate Yield curve/Inverted Recession Balance sheet Depression Global Rolling Shapes Stagflation U.K. recessions U.S. recessions Shock Demand Supply Unemployment
Commercial Revolution (1000–1760)	Great Slump (1430–1490) Slump of 1706 Great Frost of 1709
1st Industrial Revolution (1760–1840)	British credit crisis of 1772–1773 1772–1774; England Scotland Thirteen Colonies 1785–1788 Copper Panic of 1789/Panic of 1792 (1789–1793) Panic of 1796–1797 (1796–1799) 1802–1804 1807–1810 1812 Post-Napoleonic Depression (1815–1821) 1822–23 Panic of 1825 (1825–1826) 1828–29 1833–34 Panic of 1837 (1836–1838 and 1839–1843)
Early Victorian Britain/ Civil War-era United States (1840–1870)	1845–46 Panic of 1847 (1847–1848) 1853–54 Panic of 1857 (1857–1858) 1860–61 Panic of 1866 (1865–1867) Black Friday (1869–1870)
Gilded Age/ 2nd Industrial Revolution (1870–1914)	Long Depression 1873–1879; United Kingdom United States Depression of 1882–1885 1887–88 Baring crisis (1890–1891) Panic of 1893 (1893–1897) 1899–1900 Panic of 1901 (1902–1904) Panic of 1907 (1907–1908) Panic of 1910–1911 (1910–1912) Financial crisis of 1914 (1913–14)
Interwar period (1918–1939)	Post–World War I recession (1918–1919) Depression of 1920–1921 Roaring Twenties 1923–1924 1926–1927 Great Depression 1929–1939; Australia Canada India New Zealand South Africa United Kingdom United States Recession of 1937–1938
Post–WWII expansion (1945–1973)	1945 Recession of 1949 (1948–1949) Recession of 1953 (1953–1954) Recession of 1958 (1957–1958) Recession of 1960–1961 Recession of 1969–1970
Great Inflation (1973–1982)	1973–1975 recession United Kingdom United States Early 1980s recession 1980–1982; Canada United Kingdom United States
Great Moderation/ Great Regression (1982–2007)	1990s United States boom Early 1990s recession 1990–1991; Australia Canada United Kingdom United States 1997 Asian financial crisis Early 2000s recession (2001)
Digital Revolution (2007–present)	Great Recession 2007–2009; Australia Bangladesh Canada India Malaysia New Zealand Pakistan South Africa Sri Lanka United Kingdom United States COVID-19 recession 2020–2022; Australia Bangladesh Belize Botswana Canada India Malaysia Namibia New Zealand Singapore United Kingdom United States Zambia