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
-
Empowering Girls in ICT: FAWE Ghana advocates for gender equality in the Tech sector
1 hour -
Rangnick ‘contacted by Bayern Munich’ about manager job
1 hour -
Winneba Youth Choir celebrates 35th Anniversary with Aseda Concert sponsored by Fidelity Bank
1 hour -
Bonwire residents reject Agya Koo’s endorsement of Ejisu NPP MP aspirant
1 hour -
SSNIT to run out of reserves due to deficits – ILO
1 hour -
Lagos officials eye Jospong Group’s eco-friendly waste management module
1 hour -
Photos: NDC outdoors Prof Naana Opoku-Agyemang as running mate
1 hour -
Tevez released from hospital after chest pains
1 hour -
EU expresses confidence in Ghana’s rejection of Anti-LGBTQI legislation
1 hour -
UK to improve access to life-saving malaria drugs for the most-affected countries
2 hours -
Newey to leave Red Bull over Horner allegations
2 hours -
Fifa announces deal with Saudi oil company Aramco
2 hours -
Free SHS: It takes time to review a policy – Tsiboe-Darko
2 hours -
Spanish prosecutors ask judge to scrap case against PM Pedro Sánchez’s wife
2 hours -
Kwabena Fori releases ‘Let Me Go’ ahead of ‘Tuesday’ EP
2 hours