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UPDATE 1-Africa will not return to pre-pandemic growth before 2022 -IMF

Published 22/10/2020, 12:27
© Reuters.

(Adds quote, details)
JOHANNESBURG, Oct 22 (Reuters) - Sub-Saharan Africa's
economy will not rebound to pre-pandemic growth levels until
2022 with major economies likely to take even longer to recover,
the International Monetary Fund wrote in a report published on
Thursday.
The Fund forecasts the regional economy will shrink by 3%
this year with tourism and oil-dependent countries hit hardest
by the fallout from COVID-19. It is forecast to return to growth
next year with an expansion of 3.1%.
"And even this outcome is subject to some key downside
risks," the IMF wrote in its regional economic outlook for
Africa.
South Africa, Nigeria and Angola -- the continent's largest
economies -- will see sharp contractions of 8%, 4.3% and 4%
respectively, according to the report, and will not see growth
back at 2019's levels until at least 2023 or 2024.
Sub-Saharan Africa is meanwhile on track for a fiscal
deficit of 7.6% this year and 5.9% in 2021 with an external
financing shortfall of between $130 billion and $410 billion for
2020-2023.
"Without significant additional assistance, many countries
will struggle to simply maintain macroeconomic stability while
also meeting the basic needs of their population," the report
stated.

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