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Market Brief - The European Debt Crisis: Risks for Africa?


At the outset of the global financial and economic crisis, Africa’s immunity from negative effects was widely predicted, given its limited financial integration with the rest of the world. While the crisis hit Africa with delay, it operated through multiple channels (trade, capital flows, remittances, tourism, and others) and led to a significant slowdown of African economies. Real GDP growth fell from an average of 5.6% during 2001 – 08 to 2.5% in 2009, while working poverty and unemployment escalated, especially among the youth.

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