Audio By Carbonatix
Sub-Saharan Africa will post its first recession in 25 years as the coronavirus pandemic brings economies to a halt and disrupts global trade, the World Bank said.
Gross domestic product in the region will probably contract 2.1%-5.1% in 2020, the Washington-based lender said in an emailed copy of its Africa Pulse report on Thursday. Growth was 2.4% in 2019.
“The Covid-19 pandemic is testing the limits of societies and economies across the world, and African countries are likely to be hit particularly hard,” Hafez Ghanem, World Bank Vice President for Africa, said in a statement accompanying the report.
The growth downgrade is based on risks including a sharp decline in output in key trading partners, such as China and the euro area, falling commodity prices, reduced tourism, and measures taken to contain the virus, the World Bank said.
It estimates the virus outbreak will cost Sub-Saharan Africa between $37 billion and $79 billion in output losses due to disruption to trade and value chains, reduced foreign investment and aid.
The pandemic is also hitting the region’s three biggest economies -- Nigeria, South Africa and Angola -- at a time when growth was already weak and oil prices and other commodities have declined, the World Bank said.
“We are rallying all possible resources to help countries meet people’s immediate health and survival needs while also safeguarding livelihoods and jobs in the longer term -- including calling for a standstill on official bilateral debt service payments,” Ghanem said.
Latest Stories
-
Fifa scraps controversial World Cup investment plan
3 hours -
WAFCON 2026: South Africa fight back to earn dramatic draw against Côte d’Ivoire
4 hours -
We should not over-commercialise football – Eric Alagidede
4 hours -
GFA should reject FIFA’s World Cup sale proposal – Eric Alagidede
4 hours -
Ghanaian woman jailed 5 years in US for $1.6million romance scam
4 hours -
Parliament passes Energy Sector Levies Amendment Bill to tighten fuel subsidy regime
5 hours -
Unique by Design project launched to promote disability inclusion in Ghana’s fashion industry
7 hours -
Joseph Paul Amoah finishes seventh in Commonwealth Games 200m final
7 hours -
Mahama urges Dagbon Regent to preserve peace and continue late Ya-Na’s development legacy
7 hours -
RANA asks Parliament to restrict MP Yakubu Mohammed child engagements until safeguarding training is completed
7 hours -
Rights group warns against exposing schoolgirl to fallout from MP’s comment
7 hours -
Family of Bukom crash victim visits Gender Minister ahead of funeral
7 hours -
An apology is not a safeguarding policy – RANA demands Parliament’s action over MP’s comment to schoolgirl
7 hours -
Prince Adu-Owusu: The August that changed everything
8 hours -
Ato Forson announces ‘New Economy’ policy for 2027 budget, promises shift to growth-focused spending
8 hours