The global Covid19 pandemic may plunge sub-Saharan Africa into its first recession in 25 years and push economies back to war-time levels, the World Bank said in a new forecast.
The rapidly spreading Covid-19 coronavirus outbreak is expected to push sub-Saharan Africa into recession for the first time in 25 years, the World Bank said in a new forecast on Thursday.said the region’s economy will contract 2.1% to 5.1% from growth of 2.4% last year, and that Covid-19 will cost sub-Saharan Africa $37 billion to $79 billion in output losses this year due to trade and value chain disruptions, among other factors.
The World Bank and the International Monetary Fund are racing to provide emergency funds to African countries and others to combat the virus and mitigate the impact of sweeping shutdowns aimed at curbing its spread. Various African governments have announced lockdowns or curfews in response to the virus, which was slow to reach many African countries, but is now growing exponentially, according to the WHO.
The bank said the spread of the respiratory virus could also lead to a food security crisis on the continent, with agricultural production forecast to contract 2.6% – and even up to 7% – in the event of trade blockages.
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