Covid-19: IMF says Africa could experience a recession far worse than it previously expected

Economic governance
Thursday, 02 July 2020 13:18
Covid-19: IMF says Africa could experience a recession far worse than it previously expected

(Togo First) - The coronavirus-induced recession that the International Monetary Fund (IMF) expects to hit the sub-Saharan Africa region could be far worse than it has foreseen. 

Indeed, according to the body, the pandemic could cause the region’s earnings to fall back to the same levels they were a decade ago. From a 1.6% contraction forecast in April, the IMF now expects the SSA economy to shrink by 3.2% - a situation attributed to the closure of borders and businesses, total and partial lockdowns, resulting in lower tax revenues and higher public spending (to tackle the health emergency). 

This is bad news for Togo which, it should be recalled, initially eyed a 5% economic growth rate this year, but had to scale down the figure to 3%, then 1%, as the pandemic persisted. 

While it is true that Africa is presently less affected by the pandemic, looking at the number of cases confirmed, the continent could face very difficult economic repercussions in the coming months - especially if the virus’ spreading curve were to accelerate. 

Sub-Saharan African countries are at the moment very cautious as they slowly reopen their economies and borders. Also, regardless of many gloomy expert predictions for Africa, the continent seems more resilient to the virus. 

Ayi Renaud Dossavi

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