As Covid-19 crisis stalls business, various scenarios show the continent will not escape economic contraction in 2020Picture: 123RF/Dmitrijs Kaminskis
In all other scenarios we project that Africa will experience an economic contraction in 2020. In the worst-case scenario Europe and the US would continue to face significant outbreaks as East Asia faces a surge of reinfection. If significant outbreaks were to occur in Africa too, this would lead to a serious economic downturn. Africas average GDP growth in 2020 would be cut by about eight percentage points, resulting in a negative rate of 3.9%.
But more must be done — and many African countries are still in the early stages of marshalling their responses into focused, prioritised efforts that make the most of the limited time and resources available. An immediate step for governments is to set up or build out national nerve centres to co-ordinate and accelerate their response to the crisis.
But such institutions can build on these steps by supporting ideas for bigger and bolder initiatives. For example, they can find creative ways to repurpose existing 202021 funding towards Covid-19 response and recovery efforts. And they can help governments design effective fiscal and business stimulus packages — a key challenge given Africa’s limited fiscal capacity.
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Source: SABC News Online - 🏆 32. / 51 Read more »
Source: SABC News Online - 🏆 32. / 51 Read more »