The Impact of the 2007/2008 Global Financial Crisis on Ghana

At the onset of the 2007/2008 global financial crisis, the initial position of most pundits was that due to the limited integration of developing countries especially Sub-Saharan Africa, the region would be insulated from the vagaries of the financial contagion. Evidence so far indicates that the region was not spared from the fallout of global financial crisis. The financial crisis erupting on the heel of the global energy and food crisis exacerbated an already precarious Ghanaian economic condition. By assessing the different transmission mechanisms of the financial crisis on the economy of Ghana, this research unveils the different threads through which the affected channels impacted the crisis on the Ghanaian economy. The research findings points to FDI flows and imports as the most vulnerable of the transmission mechanisms with respect to the Ghanaian economy.