Abstract
This paper uses economic impact analysis to show the effects of the current global financial crisis on the economies of countries in the low-income emerging and developing regions of the world: Central and Eastern Europe (CEE), Commonwealth of Independent States (CIS), Developing Asia (DA), Latin America and the Caribbean (LAC), Middle East and North Africa (MENA), and Sub-Saharan Africa (SSA). We examined the regional economic impacts with respect to the growth rates of real GDP, inflation, and the labor markets and accessed the international economic impact in terms of global trade, foreign direct investment and portfolio investment flows, foreign aid inflows, and private remittances. The results indicate that the effects of the financial crisis vary within and across regions. For example, while all regions experienced negative impact on real GDP growth rates in 2008, the impact was more pronounced in the LAC, SSA, and MENA regions in 2009. With respect to the international economic impact of the global financial crisis, the terms of trade worsened in MENA, SSA, and LAC resulting in deteriorating current accounts balances in 2009.