1. Africa's Economic Response to the Covid-19 Pandemic
- Author:
- V. Srinivas
- Publication Date:
- 10-2020
- Content Type:
- Research Paper
- Institution:
- India International Centre (IIC)
- Abstract:
- Nelson Mandela once said, ‘do not judge me by my successes, judge me by how many times I fell down and got back up again.’ Economists have warned that the Covid-19 pandemic will have a substantial economic impact on Sub-Saharan Africa, and the economic costs could be devastating. The June 2020 Regional Economic Outlook for Sub-Saharan Africa projects that real GDP will contract by 3.2 per cent, and per capita income will fall by 5.5 per cent in 2020, levels last seen a decade ago. Lockdowns have affected informal sector workers, and small and medium enterprises in service sectors, resulting in more poverty and income inequality. The International Monetary Fund (IMF) has said that Africa’s regional policies should remain focused on safeguarding public health, supporting people and businesses hardest hit by the crisis, and facilitating recovery. The magnitude of the economic crisis in Africa can be gauged from the slowdown being witnessed in the larger economies. In South Africa, economic activity is projected to contract by 8 per cent in 2020, in Nigeria, the economic contraction is projected at 5.4 per cent in 2020, in Angola, economic activity will fall by 4 per cent, and in Ethiopia, economic growth is projected at 1.9 per cent, which is still 1.3 per cent below 2019 growth rates.
- Topic:
- Economics, International Political Economy, Economic Policy, Pandemic, COVID-19, and Regional Economy
- Political Geography:
- Africa, South Africa, and Sub-Saharan Africa