COVID-19 and Trade in SSA : Impacts and Policy Response
Measures taken to curtail the spread of COVID-19 have led to a sharp contraction of the global economy and an even larger decline in trade, with significant implications on the livelihoods of people in Africa. Despite the relatively low number of c...
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| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/914781591043537997/COVID-19-and-Trade-in-SSA-Impacts-and-Policy-Response http://hdl.handle.net/10986/33841 |
| Summary: | Measures taken to curtail the spread of
COVID-19 have led to a sharp contraction of the global
economy and an even larger decline in trade, with
significant implications on the livelihoods of people in
Africa. Despite the relatively low number of cases, the
region's economy would be hard hit due to its high
reliance on trade, heavy dependence on commodities, a
fragile food system, and limited fiscal capacity to respond.
This reinforces the region's inherent vulnerabilities,
posing risks of wiping out the gains made in poverty
reduction. Countries that have been registering robust
growth face rapid growth declines. The response calls for a
regional and global coordination to scale up safety nets,
facilitate flow of essential goods and ease the
region's debt burden to free some fiscal space. There
is a need for active policies to support enterprises so that
disruptions are not permanent. As they chart their
operations beyond the pandemic, countries should reexamine
their industrial policies and firms need to rethink their
strategies to address emerging uncertainties. |
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