Sub-Saharan Africa to fall into recession in 2020—World Bank

The World Bank has warned that the rapidlyspreading coronavirus outbreak is expected to push sub-Saharan Africa into recession in 2020 for the first time in 25 years.

The International lender’s Africa’s Pulse report released on Tuesday said the region’s economy will contract 2.1% to 5.1% from growth of 2.4% last year, and that the coronavirus will cost sub-Saharan Africa $37 billion to $79 billion in output losses this year due to trade and value chain disruption, among other factors.

“The COVID-19 pandemic is testing the limits of societies and economies across the world, and African countries are likely to be hit particularly hard,” World Bank Vice President for Africa Hafez Ghanem said.

The bank said the spread of the flu-like respiratory disease also had potential to lead to a food security crisis on the continent, with agricultural production forecast to contract 2.6% and up to 7% in the event of trade blockages.

There are now more than over 11,400 confirmed cases of coronavirus across the continent, with a number of African countries imposing a range of prevention and containment measures against the spread of the pandemic.

According to the latest data by the John Hopkins University and Africa Center for Disease Control on COVID-19 in Africa, only two countries are holding out as of April 8.
Last month, the World Bank announced a $12-billion package to help poorer countries confront the disease’s health and economic effects, while the IMF announced a rapid credit-facility of $50 billion for similar purposes.

The Breton-wood institutions have also called on China, the United States and other bilateral creditors to temporarily suspend debt payments by the poorest countries so they can use the money to halt the spread of the disease and mitigate its financial impact.