[ad_1]
As African countries continue to battle the ripple effects of the COVID-19 pandemic on their economies and wider society, even as many are buried under mounting debt, a new UN report warns that the devastating impacts of the pandemic in Africa they will be felt for many years unless some action is taken.
The report, Global Economic Outlook and Situation 2021, released on March 31, 2021, warned that unless smart investments are made in economic, social and climate resilience to ensure a strong and sustainable recovery of the global economy, the socio-economic impact devastating of the COVID-19 pandemic will be felt for many years.
According to the report, in 2020, the world economy contracted by 4.3%, more than two and a half times more than during the 2009 global crisis. The modest 4.7% recovery expected in 2021 would barely offset the losses in 2020 .
He noted that developed economies, which are expected to experience 4% production growth in 2021, contracted the most, by 5.6%, due to economic shutdowns and subsequent waves of the pandemic, which it would increase the risk of premature austerity measures that would only derail global recovery efforts.
Developing countries, he said, experienced a less severe contraction of 2.5%, with an expected rebound of 5.6% in 2021. However, the economic contraction among developing countries, falling exports and local consumption rates, as well as high levels of public debt significantly increase poverty levels, the report said.
The report further notes that African countries are experiencing an unprecedented economic recession with significant adverse impacts on development.
“Lower commodity prices, the collapse of tourism and lower remittances, exacerbated by much-needed internal lockdowns and other measures to control the spread of the pandemic, have led to a severe and widespread deterioration of the economic situation. Limited fiscal space, difficult financing conditions and increased public debt have increased the risks of over-indebtedness, “he said.
According to the report, sustained recovery from the pandemic will depend not only on the size of the stimulus measures and the rapid deployment of vaccines, but also on the quality and effectiveness of these measures to build resilience in the face of future crises.
The report also highlights the need for African countries to prioritize the diffusion of digital technologies, supported by the expansion of an affordable and universal digital infrastructure. An effective framework for the implementation of the African Continental Free Trade Area could also become an important tool to promote intra-African trade, food security and productivity.
The report was produced by the United Nations Department of Economic and Social Affairs (DESA), in association with the United Nations Conference on Trade and Development (UNCTAD) and the five United Nations regional commissions. The UN World Tourism Organization also contributed to the report.
By Emmanuel K. Dogbevi
Copyright © 2021 by NewsBridge Africa
All rights reserved. This article or any part of it may not be reproduced or used in any way without the express written permission of the publisher, except for the use of brief citations in reviews.
