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Six Charts that Show Sub-Saharan Africa's Sharpest Economic Contraction Since the 1970s
June 29, 2020--The downward revision to the growth projections reflects the impact of domestic measures to contain the COVID-19 outbreak, as well as a weaker external environment, the IMF says in its latest Regional Economic Outlook Update: Sub-Saharan Africa. On average, per capita incomes across the region will fall by 5½ percent in 2020, back to levels last seen nearly a decade ago.
This will likely lead to more poverty and widen income inequality as lockdowns disproportionally affect informal sector workers and small- and medium-sized companies in the services sectors. The region’s outlook is subject to much uncertainty.
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Source: IMF
Africa: How Africa Can Take This Moment to End a 500-Years-Old Economic Model
June 25, 2020--Governments can take the opportunity of COVID-19 to change Africa's place in global economic structures, but it will take pan-African coordination.
African economies are facing a COVID-19 induced crisis. Global demand for raw materials has collapsed. International tourism has virtually halted. And even wealthier governments on the continent have been unable to provide the financial support necessary to prop up their struggling sectors.
In response, African finance ministers in April asked creditors to reduce their debt repayments. Several economic leaders on the continent have similarly called for a two-year debt freeze and urged the IMF and World Bank to provide debt relief for low income countries.
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Source: allafrica.com
Nigeria's Economy Faces Worst Recession in Four Decades, says New World Bank Report
June 25, 2020--The collapse in oil prices coupled with the COVID-19 pandemic is expected to plunge the Nigerian economy into a severe economic recession, the worst since the 1980s, according to the latest World Bank Nigeria Development Update (NDU).
The report, "Nigeria In Times of COVID-19: Laying Foundations for a Strong Recovery" estimates that Nigeria's economy would likely contract by 3.2% in 2020. This projection assumes that the spread of COVID-19 in Nigeria is contained by the third quarter of 2020. If the spread of the virus becomes more severe, the economy could contract further. Before COVID-19, the Nigerian economy was expected to grow by 2.1% in 2020, which means that the pandemic has led to a reduction in growth by more than five percentage points.
view the World Bank Report-Nigeria in Times of COVID-19: Laying Foundations for a Strong Recovery
Source: World Bank
South Africa's budget deficit, debt seen widening as virus hits economy
June 24, 2020--South Africa projected its budget deficit would widen to 14.6% of GDP in the current fiscal year, the highest since the end of apartheid.
President Cyril Ramaphosa announced a 500 billion rand coronavirus relief package in April, equivalent to 10% of South Africa’s GDP.
South Africa's budget deficit is projected to widen sharply while debt is seen ballooning significantly, the Treasury said on Wednesday, as the COVID-19 pandemic further stifles the recession-hit economy.
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Source: cnbc.com
Nigeria: With COVID-19, Nigeria's Balance of Trade Dwindles
June 21, 2020--For two consecutive quarters, Nigeria's trade balance has been in the deficit. The largest economy in Africa recorded a trade deficit to the tune of about N139billion in first quarter of 2020 with imports component of trade at about N4.22trillion while export stood at about N4.08trillion.
The National Bureau of Statistics has attributed the dismal performance to the negative impact of the COVID-19 pandemic on the nation's economy.
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Source: allafrica.com
Rand loses over 3% as fears over coronavirus reignite
June 11, 2020--The rand's rally of last week has come to an abrupt end, with the local currency losing over 3% on Thursday to breach R17/$.
This follows a grim economic outlook published by the US Federal Reserve on Wednesday-which included a pledge to keep interest rates on the low side until 2022 -as well as a fresh batch of unemployment claims.
Initial claims for the week ending 6 June fell to a seasonally adjusted 1.5 million, but analysts have warned the labour market's recovery is likely to be slow.
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Source: FIN24
Tanzania: Dar es Salaam Stock Exchange Trading Returns After Friday Shocker
June 10, 2020--Trading activities returned to equity counters at the Dar es Salaam Stock Exchange (DSE) during the first working day this week after nil trading on Friday.
On Friday, the 24-year old stock market shocked financial analysts when it recorded zero trading on equities.
It, however, moved government securities valued at Sh16.7 billion on Friday as investors increasingly prefer risk-free investment avenues to equities.view more
Source: allafrica.com
Rand's winning streak continues-but it could be short-lived
June 5, 2020--With the rand below R17/$ for the first time in two months, analysts have warned the possibility that it will again start to weaken in the short term is fairly high.
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Source: FIN24
Stock market rally peters out as oil prices fall
June 4, 2020--Global stock markets took a turn for the weaker on Thursday after previous gains, with investors cautious as they awaited a key ECB meeting.
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Source: FIN24
Rand's speedy recovery rally caught some traders by surprise
June 1, 2020--The rand's rapid turnaround from April's record low has already burnt some traders' fingers.
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Source: FIN24