《Impact of the global financial crisis on sub-saharan africa》.pdf

Impact of the Global Financial Crisis on Sub-Saharan Africa A f r i c a n D e p a r t m e n t I N T E R N A T I O N A L M O N E T A R Y F U N D Impact of the Global Financial Crisis on Sub-Saharan Africa A f r i c a n D e p a r t m e n t I N T E R N A T I O N A L M O N E T A R Y F U N D ©2009 International Monetary Fund Production: IMF Multimedia Services Division Typesetting: Alicia Etchebarne-Bourdin The downturn in global growth, the decline in most commodity prices, and tighter credit have significantly worsened the economic outlook for sub-Saharan Africa. Risks are rising and it is uncertain how long the crisis will last. Policy makers must walk a tightrope between not aggravating the shock in aggregate demand on the one hand, while protecting hard-won gains in economic fundamentals on the other. Any policy response must also take into account the impact on the poor and seek to incorporate social safety nets. Countries that do not have debt sustainability and financing constraints may have some scope for fiscal easing. But it is also clear that countries will depend critically on donors honoring their commitments to aid and even increasing aid, despite new competing demands on their own budgets. The IMF itself is moving fast to increase financial support to affected countries, step up technical assistance, and reinforce the policy dialogue with its African members. I. The Global Financial Crisis and the Short-Term Outlook The current financial crisis is more global than any other period of financia