UPDATE 1-Sub-Saharan Africa to fall into recession in 2020, says World Bank

(Adds details, background)
NAIROBI, April 9 (Reuters) - The rapidly-spreading
coronavirus outbreak is expected to push sub-Saharan Africa into
recession in 2020 for the first time in 25 years, the World Bank
said in a new forecast on Thursday.
The bank's Africa's Pulse report 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.
Africa has at least 10,956 confirmed cases of the novel
coronavirus, 562 deaths and 1,149 recoveries, according to a
Reuters tally based on government statements and WHO data.
"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 World Bank and International Monetary Fund are racing to
provide emergency funds to African countries and others to
combat the virus and mitigate the impact of sweeping shutdowns
aiming at curbing its spread.
The coronavirus has led to suspension of international
passenger travel in many countries on the continent, and hit
sectors such as tourism.
Various African governments have announced lockdowns or
curfews in response to the virus, which was slow to reach many
African countries but is now growing exponentially, according to
the World Health Organization.
Real gross domestic product growth was projected to fall
sharply particularly in the region's three largest economies –
Nigeria, Angola, and South Africa, the World Bank said.
Oil exporting-countries would also be hard-hit; while growth
would likely weaken substantially in the West African Economic
and Monetary Union, and the East African Community due to weak
external demand, disruptions to supply chains and domestic
production.
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.
"Food imports would decline substantially (as much as 25% or
as little as 13%) due to a combination of higher transaction
costs and reduced domestic demand," the bank said in a statement
accompanying the report.
The 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. "There will be need for some sort of debt relief from
bilateral creditors to secure the resources urgently needed to
fight COVID-19 and to help manage or maintain macroeconomic
stability in the region," Cesar Calderon, the bank's lead
economist and lead author of the report, said.
The World Bank said African policymakers should focus on
saving lives and protecting livelihoods by spending money to
strengthen health systems and taking quick actions to minimise
disruptions in food supply chains.
It also recommended social protection programmes, including
cash transfers, food distribution and fee waivers, to support
citizens, especially those working in the informal sector.