Africa’s forecast of 2.4% growth for the year has been dealt a deathblow by the global Covid-19 coronavirus pandemic.
Albert Zeufack, the World Bank’s chief economist for Africa, delivered a startling assessment on Thursday that conservative estimates are for a -2.1% contraction, though it may well be possible that the real number could be a -5.1% contraction in the continent’s growth, which will plunge sub-Saharan Africa into its first recession in 25 years and push economies back to war-time levels.
“These are unprecedented times. The world is facing the deepest recession since World War 2, and this could generate a significant food crisis in Africa,” Zeufack said.Trade channels must, if possible, be kept open at all costs as the disruption in the value chain and commodities could be devastating.
“In these counties, economic growth was already fragile. South Africa, for example, was already in recession. For these countries, growth could be as much as -7% for the year as Covid-19 compounds existing problems. “Governments must take measure in the right direction and support the informal business sector” to prevent the explosion of unemployment.
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