What are the implications of the global economic crisis for African economies? The health of the global economy matters profoundly for African economies, especially because of its impact on their balance of payments.
Some sell-off in emerging-market assets occurred during May 2006, due partly to three factors: seasonal position squaring ahead of the holidays in the northern hemisphere; developments in specific emerging markets; and higher returns now being possible in developed markets. It is too soon to judge the possible extent and effects of this sell-off – hopefully it would not disrupt financial markets in affected countries.