IMF Confident of Africa's Economic Recovery, Albeit Slow

The IMF's six-monthly economic outlook for the Sub-Saharan region, shows that the economies will begin to recover from last year's Covid-19 shock and grow again in 2021. But a predicted 3.4 % growth rate will fall behind that of the rest of the world, says the International Monetary Fund (IMF). The slow recovery is attributed to the slow delivery of Covid-19 vaccines to Africa and the lack of resources to stimulate economies.

Isabel Ortiz and Matthew Cummins write in IPS, that an analysis of the International Monetary Fund's fiscal projections show that budget cuts are expected in 154 countries in 2021 and as many as 159 in 2022. This follows an International Monetary Fund (IMF) and World Bank virtual meeting with world finance ministers, to discuss policies to tackle the Covid-19 pandemic and their respective countries socio-economic recovery. Another alert has been sounded in a global study done by the Initiative for Policy Dialogue at Columbia University, international trade unions and civil society organisations, that found that most governments are imposing budget cuts, precisely at a time when their citizens and economies are in greater need of public support. These austerity measures will greatly impact countries with high developmental needs, including Liberia, Libya, DR Congo, South Sudan, Zambia and Zimbabwe.

InFocus

Nairobi, Kenya (file photo).

This IMF graph shows how recovery from the coronavirus-related plunge in income in 2020 is predicted to be much slower in sub-Saharan Africa - represented by the orange line - than in the rest of the world - shown by the blue line.

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