IMF proffers initiatives to mitigate economic impact of pandemic in SSA
The International Monetary Fund (IMF) has stated that what began as a health crisis and now a major global economic crisis, may have substantial economic impact on Nigeria and other sub-Saharan African countries.
According to the IMF, many countries in sub-Saharan Africa have limited room in their budgets to increase spending, as they have had rely more on global capital markets since the financial crisis a decade ago.
Already, it has stated that growth forecast in April’s regional outlook would be significantly lower, as slowdown will mean revenues take a hit, just as countries face additional public spending needs.
The IMF had on Monday, warned that the world might witness a global recession that is as bad as 2008 financial crisis, as a result of the coronavirus pandemic.Though the growing presence of COVID‑19 in sub-Saharan Africa threatens the same human costs as elsewhere in the world, the Fund said the economic costs could be just as devastating.
To mitigate the impact of the pandemic, the IMF stated that fiscal policy would have to play a leading role in mitigating the shock, with fiscal positions reverting to medium‑term paths consistent with debt sustainability.