The International Monetary Fund (IMF) said Thursday that economic activity is expected to contract by 3% in sub-Saharan Africa in 2020, before returning to growth of 3.1% in 2021.
In its latest report on the economic outlook for sub-Saharan Africa, the IMF said current projections are subject to greater uncertainties than usual, especially regarding the persistence of COVID-19, the availability of financial support development and the development of an effective, affordable and reliable vaccine.
The IMF noted that the main growth drivers for 2021 would include improved exports and a pickup in private consumption and investment.
Abebe Aemro Selassie, Director of the IMF’s Africa department, noted that sub-Saharan Africa is currently facing an unprecedented health and economic crisis. “In just a few short months, this crisis jeopardized several years of hard-won development progress in the region, and disrupted the daily lives and livelihoods of millions of people,” said Mr. Aemro Selassie. .
The resurgence of infections in many advanced economies and the threat of recurring epidemics in the region further suggest that the pandemic is likely to remain a very real concern for some time, he added.
African countries are now starting to carefully reopen their economies, and are looking for policies that can help them jump-start growth, he said.
“Due to the containment measures, regional activity fell sharply during the second quarter of 2020, but thanks to the relaxation of precautionary measures and the rise in commodity prices (…), there was some provisional signs of recovery in the second half of the year, ”he said.
Deep reforms are, however, urgently needed to revive growth, which will be difficult without external support, according to projections.
