African countries, like countries all over the world, have been badly affected by the 2010 economic crisis.
African countries were experiencing the beginning of an economic recession in 2009, meaning that the global crisis of 2010 affected African countries much more potently. In 2009, for example, the South African economy as a whole saw the lowest amount of growth since 1984, with the manufacturing and mining sectors experienced especially poor growth rates.
Because the African economy was already underperforming, the global economic recession of 2010 intensified the existing economic problems. However, the FIFA World Cup of 2010 brought many economic benefits to South Africa, and to some extent helped to counteract the effects of the recession. For example, it is thought that the World Cup raised the equivalent of $523million USD in South Africa, and created millions of jobs in the construction, catering, tourism and hospitality industries.
Unfortunately, the jobs created by the World Cup were relatively temporary, and after the World Cup had finished, the effects of the recession were truly felt. It is thought that the unemployment rate in South Africa hit 25% after the World Cup had ended, and that over 50,000 manufacturing jobs and 30,000 agricultural jobs were lost.
The effects of the global economic recession have been felt in Northern Africa, too. This is mainly because most North African countries trade with the European Union, and many European countries such as Greece and Italy have suffered greatly as a result of the 2010 recession. This means that countries within Europe have been buying fewer goods from Northern Africa, and the economy in North Africa has suffered as a result. However, inside Northern Africa, contributors such as small, local businesses have not suffered too badly, and as a result, Africa as a whole looks set to recover relatively quickly from the 2010 economic crisis.
- Africa prior to the 2010 recession
African countries were experiencing the beginning of an economic recession in 2009, meaning that the global crisis of 2010 affected African countries much more potently. In 2009, for example, the South African economy as a whole saw the lowest amount of growth since 1984, with the manufacturing and mining sectors experienced especially poor growth rates.
- Africa during the 2010 recession
Because the African economy was already underperforming, the global economic recession of 2010 intensified the existing economic problems. However, the FIFA World Cup of 2010 brought many economic benefits to South Africa, and to some extent helped to counteract the effects of the recession. For example, it is thought that the World Cup raised the equivalent of $523million USD in South Africa, and created millions of jobs in the construction, catering, tourism and hospitality industries.
Unfortunately, the jobs created by the World Cup were relatively temporary, and after the World Cup had finished, the effects of the recession were truly felt. It is thought that the unemployment rate in South Africa hit 25% after the World Cup had ended, and that over 50,000 manufacturing jobs and 30,000 agricultural jobs were lost.
The effects of the global economic recession have been felt in Northern Africa, too. This is mainly because most North African countries trade with the European Union, and many European countries such as Greece and Italy have suffered greatly as a result of the 2010 recession. This means that countries within Europe have been buying fewer goods from Northern Africa, and the economy in North Africa has suffered as a result. However, inside Northern Africa, contributors such as small, local businesses have not suffered too badly, and as a result, Africa as a whole looks set to recover relatively quickly from the 2010 economic crisis.
