Abstract
<p class="ber"><span lang="EN-GB">The purpose of the paper was to investigate if there were some negative impact of the euro zone economic crisis on sub-Saharan Africa’s (SSA) real economy. The evidence revealed that the euro zone crisis had affected sub-Saharan Africa economy in terms of trade, development assistance, and remittance. The conclusion derived from the evidence is that SSA’s economic growth was negatively affected slightly. This was due to prudential policies implemented by SSA policy-makers. The article begins with the historical background of the euro zone economic crisis and its root causes. It then provides an analysis of the transmission channels of the crisis and its impact on SSA’s economies. This is followed by a discussion of the policy responses to the crisis by SSA’s policy-makers. The paper concludes with an analysis of SSA’s recent economic performance and the way forward for long term growth and sustainable development. </span></p>
Highlights
One of the major factors contributing to the euro zone debt crisis was the 2007-2008 global financial and economic crises, which in itself was one of the worst crises to hit the global economy
The evidence revealed that the euro zone crisis had affected sub-Saharan Africa economy in terms of trade, development assistance, and remittance
All materials were grouped by key words such as euro zone, debt crisis, impact, sub-Saharan Africa (SSA) economies, growth, and development for the purpose of analysis
Summary
One of the major factors contributing to the euro zone debt crisis was the 2007-2008 global financial and economic crises, which in itself was one of the worst crises to hit the global economy. The global financial crisis and economic downturn emanated from the subprime mortgage crisis in the United States and spread to European markets as well as the rest of the world. The crisis reached its first apex in early 2010, as a result of Greece’s large structural deficit and the increasing cost of financing government debt. The Greece government used deficit spending to increase the living standards of its population as the deficit financed unemployment benefits, higher public sector salaries and pension, and served to sustain an uncompetitive labor market (UNECA, 2012)
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