Comprehensive measures are needed to limit humanitarian and economic losses
Sub-Saharan Africa is facing an unprecedented health and economic crisis due to COVID-19. One that threatens to reverse the development progress of recent years. Furthermore, by exacting a heavy human toll, upending livelihoods, and damaging business and government balance sheets, the crisis threatens to slow the region’s growth prospects for years to come.
Overall, GDP is expected to contract by -1.6 percent in 2020, a downward revision of 5.2 percentage points compared to six months ago, the International Monetary Fund says in its latest Regional Economic Outlook: Sub-Saharan Africa.
Comprehensive measures are needed to limit humanitarian and economic losses. Despite the limited space going into the crisis, timely fiscal support is crucial to protect vulnerable groups and ensure a quick recovery when the pandemic fades.
“The ability of sub-Saharan African countries to mount the necessary fiscal response will require ample external financing on grant and concessional terms from the international community,”
says Abebe Aemro Selassie, Director of the IMF’s African Department.
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