- IMF has predicted that sub-Saharan Africa's economy could contract by 3.2% by the end of the year 2020
- The projected rate is 1.6% deeper than an earlier prediction released in April
- A fall in the rate of spread of the pandemic and the easing of lockdowns are two main ways the situation could improve
The International Monetary Fund (IMF) has predicted that sub-Saharan Africa could experience a shrink in its economy by 3.2% by the end of the year 2020.
Per its Regional Economic Outlook (REO) for the year, the outbreak of the coronavirus could lead to depressed economic activities.
A report by ciitbusinessnews.com states that the 3.2% projection is 1.6% points deeper than earlier projected in the April 2020 World Economic Outlook (WEO) forecast.
The IMF noted that measures to contain the spread of the coronavirus and the general external environment have both been weakened.
The report shows that the situation can only improve if the pandemic wanes and lockdowns are further eased.
It was also revealed that growth is likely to improve to 3.4% in 2021 if global restrictions are gradually eased.
Africa recorded its first COVID-19 case following the return of travellers from hotspots in Asia, Europe, and the United States of America.
The case was recorded in Egypt on February 14, and by March 15, Africa’s 100th case was announced.
Since its outbreak, African governments have introduced various measures such as closed borders to contain its spread.
These have led to challenges such as a fall in agricultural productivity, the shutdown of businesses, and restrictions on travel and mobility.
Meanwhile, Legit.ng previously reported that despite serious bashing from the crash of global oil prices and the coronavirus pandemic that is wreaking havoc across the world, Nigeria's economy grew by 1.87%.
The growth was lower than 2.27% in Q4 of 2019 and 2.10% in Q1 of 2019, it was a turn from the reports in some financial quarters that the country's economy would not witness that much expansion.
Bloomberg admitted this in its report on Nigeria's economy on Monday, May 25, noting that its own forecast was an average growth of 0.8%.
In other news, the IMF projected negative growth for the Nigerian economy following the COVID-19 pandemic.
The IMF stated that the Nigerian economy will face a negative growth of -3.4%, indicating a recession in the country.
The financial institution projection was contained in the April 2020 World Economic Outlook report released on Tuesday, April 14, in Washington.
It stated that the global economy is projected to contract sharply by -3% in 2020, much worse than during the 2008–09 financial crises as a result of the coronavirus pandemic.
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