Mozambique is the only Portuguese-speaking African country that could have positive economic growth this year, according to the International Monetary Fund (IMF), despite the financial constraints brought about by Covid-19.
According to the IMF, the estimate is 1.4 percent, however, the institution expects sub-Saharan African countries in general to experience an economic contraction in the order of 3.2 percent.
Ten weeks after presenting the prospects for Sub-Saharan Africa in the context of covid-19, the International Monetary Fund (IMF) now expects an economic contraction of 3.2% in the region this year, ie double the April forecast, equivalent to a 7% drop compared to predictions made before the pandemic.
“For the region as a whole, we anticipate a recession in revenue of around 3.2 percent. Now, because the population will tend to grow annually, then the impact per capita, that is, per individual will correspond to a drop in income of the order of 5.2 percent, which is a severe blow to living standards and for the good -being of the population. I would like to stress that this is a figure that will vary from person to person, depending on the circumstances in which they live and if they manage to keep their jobs », explained the director of the African department of the IMF.
Among the Portuguese-speaking African countries, Mozambique is the only one that will register positive economic growth this year, despite the effects of the new coronavirus. In 2021, the country’s growth may reach 4.2 percent.
Angola may experience a 4 percent economic contraction, Cape Verde a 5.5% recession and Guinea-Bissau a 1.9 percent decline in the economy. These estimates are contained in the most recent IMF report on “Economic Forecasts for Sub-Saharan Africa”, released on Monday.
According to the IMF, this year, African countries will need financing of US $ 102 billion and the international financial institution has a deficit of around 44 billion.
As soon as the covid-19 pandemic is under control, the IMF says it will carry out an analysis on the debt sustainability of African countries, many of which are benefiting from financing, although they are navigating unsustainability.