IMF sees significant cut in sub-Saharan Africa growth over virus
INTERNATIONAL – The International Monetary Fund will slash its projection for economic growth for one of the world’s fastest expanding regions due to the rapid spread of the coronavirus.
A “very significant downward revision” of sub-Saharan Africa’s growth forecast is inevitable as the pandemic curbs global expansion and containment measures hit domestic output, the lender’s Africa department Director Abebe Aemro Selassie said in a phone interview. The adjustments are expected in the coming weeks, he said.
The IMF projected in January that sub-Saharan African gross domestic product will expand 3.5% this year, but since then it lowered its forecast for Nigeria to 2% from 2.5%. While the lender hasn’t adjusted its estimate for South Africa, the country’s central said last week the economy will contract this year. The two countries account for half of the region’s GDP.
Source: iol.co.za