Economic Perspectives in Africa in times of COVID-19

Abstract

The COVID-19 epidemic will have an unparalleled impact in the world and has negatively affected the African economies even before the spread of the virus on the continent. Despite the recent positive evolution and the economic potential of Africa, external dependence exacerbates considerably its exposure to external shocks. It is still soon to evaluate the full impact of this crisis. Some preliminary estimates point out that Africa could go into recession for the first time in 25 years. African countries have already adopted measures to prevent the spread of the virus and to smooth its short-term consequences. There is an ongoing discussion on the economic measures that should be implemented in the medium and long term to increase economic resilience and growth in Africa.

Keywords:

country risk, debt burden, debt rescheduling, Development Bank, external debt, sovereign debt, foreign aid, emergency relief