The International Monetary Fund (IMF) has indicated that the novel coronavirus (COVID-19) will have a substantial economic impact on Sub-Sahara Africa.
It has also mentioned that the growing presence of COVID?19 in sub-Saharan Africa threatens the same human costs as elsewhere in the world and that the economic costs could be just as devastating.
Across the region, it has forecasted that growth will be hit hard. Precisely how hard is still difficult to say. But it is clear that our growth forecast in April’s regional outlook will be significantly lower.
The IMF noted that slowdown will mean revenues take a hit, just as countries face additional public spending needs. Yet, now is no time for half measures. Without exception, people’s health is the priority and countries should boost health spending accordingly.
In a statement published on the website of the IMF on the impact of the pandemic in the region , it stated that countries will also need to combat the economic fallout . The right policy prescription will depend on each country’s circumstances—the channel through which it is most expose and the depth of the connections.
The statement follows the COVID-19 outbreak across the globe which has put world economy in a reverse gear. According to the World Health Organisation (WHO), the global confirmed case of COVID-19 is 693,224 with 33,106 confirmed deaths. The pandemic is in 203 Countries.
However, the IMF noted that for Africa society’s most vulnerable in the region, “social distancing” is not realistic.
Commenting on the internet penetration on the continent, it underscored that the notion of working from home is only possible for the few. So, difficult decisions to close borders (to people, but not essential goods) are even more important. More so if we are to minimize added strain on already fragile health systems.
By Richard Owusu-Akyaw / www.thechronicle.com.gh
The post COVID-19: IMF paints gloomy economic outlook for Sub-Sahara Africa appeared first on The Chronicle Online.
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