The 2007-2009 global financial crisis has been described as the worst blow ever, since the end of the world war two. Even the famous investors such as George Soros an American businessman articulated that nothing worse than the recent financial crisis has happened since the Great Depression (Protiviti. 2008:5). According to (Malinda, 2009) the financial crisis has pressed on the world economy which has caused a major influence on trade and cost of living within developed and developing nations. (Brinkman et al. 2010:1535-1615) argue that the direct force that the crisis has had on the world economy has resulted in sever hunger in third world countries, where Africa is not an exception. (McCord, 2010:31-45) concur with (Brinkman et al. 2010:1535-1615) on the notion that the financial crisis has had negative consequences on the poor in the developing nations.
(Steyn, 2010:12) contends that in South Africa, Africa’s biggest economy (Anon. 2010:13) consumers were still struggling to get themselves out of the financial crisis regardless of the 5.5 percent cuts in the interest rates. It is also due to unemployment as a result of recession says economist Kevin Lings (Bisseker, 2010:52). Although, according to (McNulty, 2010:34 & 36) Pravin Gordhan, South Africa’s minister of finance said “SA has “done well” to shorten its recession […] SA has made big strides in easing growth constraints – the fiscal deficit has been reduced from 7.3% and the revenue picture is “a lot more positive.” Overall, the crisis has left a negative impact on South Africa and the world at large.
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