As a direct result of the late 2000s recession, some economies in Africa have been primarily affected by reduced global demand and lower prices of commodities such as oil, platinum, nickel, gold, and copper.
Moody's Investors Service warned on July 7, 2008 that South Africa could slip into a recession by the turn of the year.
Moody's cited electricity shortages, high interest rates, soaring inflation, a slumping housing and vehicle market and lower business and consumer confidence indicators.
[1] South Africa's National Treasury criticized the statement by Moody's saying, "It's not possible that we'll end up in recession."
Car sales in South Africa dropped an annual 22 percent in June due to higher interest rates.