Global Economic and Financial Crisis: Transmission Channels and Impacts on Sub-Saharan African Economies

"In this paper, an overview is then provided of how sub-Saharan African countries are exposed to the crisis through both financial and real transmission channels, and critically assess the impacts on different economies with recent data. The first part of this paper gives an overview of the recent economic development of sub-Saharan African countries, and a brief discussion of the origin and development of the crisis. The paper then proceeds to the financial transmission channels and impacts on sub-Saharan African countries. Since the financial systems in the region are so heterogeneous that their exposure to the crisis varies greatly, the focus is more on highlighting those countries being mostly affected by a particular channel. The third section of the paper discusses the spillover effects of the crisis from the financial sector to the real sector. The impacts of real transmission channels on different economies will also be evaluated. The final section concludes on the impacts brought by the different transmission channels and also provides an economic outlook for sub-Saharan Africa."