COVID-19 could lead to a shrinking of sub-Saharan Africa’s economy by 3.2% - IMF

COVID-19 could lead to a shrinking of sub-Saharan Africa’s economy by 3.2% - IMF

- Sub-Saharan Africa's economy could contract by 3.2% by the end of the year 2020, the IMF has predicted

- The projected rate is 1.6% deeper than an earlier prediction released in April

- A fall in the rate of spread of the pandemic and the easing of lockdowns are two main ways the situation could improve

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The International Monetary Fund (IMF) has predicted that sub-Saharan Africa could experience a shrink in its economy by 3.2% by the end of the year 2020.

Per its Regional Economic Outlook (REO) for the year, the outbreak of the coronavirus could lead to depressed economic activities. understands that the 3.2% projection is 1.6% points deeper than earlier projected in the April 2020 World Economic Outlook (WEO) forecast.

READ ALSO: COVID-19: Businesses call for open borders as economic activities decline

The IMF noted that measures to contain the spread of the coronavirus and the general external environment have both been weakened.

A report shows that the situation can only improve if the pandemic wanes and lockdowns are further eased.

The report also revealed that growth is likely to improve to 3.4% in 2021 if global restrictions are gradually eased.

Africa recorded its first COVID-19 case following the return of travellers from hotspots in Asia, Europe, and the United States of America.

The case was recorded in Egypt on 14 February, and by 15 March, Africa’s 100th case was announced.

Since its outbreak, African governments have introduced various measures such as closed borders to contain its spread.

These have led to challenges such as a fall in agricultural productivity, the shutdown of businesses, and restrictions on travel and mobility.

In other news, the World Trade Organisation (WTO) has lauded some countries with respect to plans taken to curb the spread of the coronavirus.

According to its Director-General, Roberto Azevêdo, some measures being implemented to deal with the pandemic are beginning to yield results.

This, he cautioned, must not lead to complacency but compel countries all over the world to intensify efforts geared towards full economic recovery.

READ ALSO: Parliament issues caution to MASLOC over 55% loan recovery rate

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Source: Yen

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