Africa is one region that has the lowest number of confirmed coronavirus cases. The total number of cases is over 18000, and the death toll is over 900, and recoveries on the record are over 4300.
The economy in Africa and the world at large is not stable as it changes every day. The coronavirus has destroyed much of the economic sector, especially on the macroeconomic portion of employment and inflation.
The governments and central banks of countries are implementing fiscal and monetary policies to mitigate the impacts of coronavirus.
The Sub-Saharan Region In Africa And Hafez Ghanem’s Views.
The coronavirus affected growth in the sub-Saharan area. Earlier this month, predictions show a decline from 2.4% to 2.1%. This is the first economic decline over the past two decades.
Hafez Ghanem, World Bank VP for Africa, comments on the coronavirus crisis. Hafez says, “The COVID-19 crisis is testing the limits of societies and economies across the globe, and African states are in danger.”
Ghanem says that they are striving to gather resources altogether to help states meet their peoples’ needs. One of their main aims is to protect jobs and sources of income. Hafez advises countries to stop servicing loan repayments to each other for the time being.
This is because by doing so, a country will have enough resources to better its health sector to fight the crisis to save the lives of people. More importantly, they are trying to come up with measures to protect small and medium businesses from falling in the region.
Financial And Economic Analysis.
The coronavirus crisis costed the region over 70 billion USD in production losses because of impacts. This involves trading and value chain interruption, which affects goods exporters and states with a better value chain involvement.
Gross Domestic Product is to decline in Nigeria, Angola, and South Africa because of little growth and investment. These three countries have the largest economies in the region.
Growth is to decline on the West African Economic and the East African Community because of decline demand and interruption to economic output. The tourism sector is to shrink because of disruption to movements.
Food Security Crisis And Albert Zeufack Explain Factors Causing The Economic Decline.
The agricultural output is shrinking between 2.6% in a favorable situation and up to 7% on the trade barrier situation. Food imports fall as high as over 20% and as low as over 10% because of expensive transaction expenses and shrink on demand.
Albert Zeufack says that some factors may be a likely hood to causing the economic decline in the region. These comprise fall in labor market involvement, capital underutilization, decrease in human resources, and long-term output impacts.
The World Bank Group.
The World Bank is taking rapid and aggressive actions to help curb the situation, especially in developing countries. They are striving to improve their health systems and the business sector to maintain its operations, thus saving jobs.
The World Bank has set out 160 billion USD in financial support in the next one year and three months to aid states in protecting the poor and weak.
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