Miss Zomboko
JF-Expert Member
- May 18, 2014
- 4,599
- 9,532
AU report estimates 20 million job loses in Africa due to coronavirus
A recent African Union (AU) study reveals that about 20 million jobs are at risk on the continent as a result of the impact of the coronavirus pandemic.
Most African economies are projected to shrink this year due to the pandemic. Although Africa accounts for just a fraction of total cases of the disease, which has infected more than one million people worldwide as of April 9.
African economies are already facing an impending global economic downturn, plummeting oil and commodity prices and an imploding tourism sector.
Before the onset of the pandemic, continent-wide gross domestic product (GDP) growth had been projected by the African Development Bank to reach 3.4 percent this year. However, in both scenarios modelled by the AU study titled ‘Impact of the coronavirus (COVID 19) on the African Economy’, GDP will now shrink.
Under what the AU researchers deemed their realistic scenario, Africa’s economy will shrink 0.8 percent, while the pessimistic scenario said there would be a 1.1 percent dip.
Up to 15 percent for foreign direct investment could disappear. According to the study, African governments could lose up to 20 to 30 percent of their fiscal revenue, estimated at 500 billion in 2019.
A recent African Union (AU) study reveals that about 20 million jobs are at risk on the continent as a result of the impact of the coronavirus pandemic.
Most African economies are projected to shrink this year due to the pandemic. Although Africa accounts for just a fraction of total cases of the disease, which has infected more than one million people worldwide as of April 9.
African economies are already facing an impending global economic downturn, plummeting oil and commodity prices and an imploding tourism sector.
Before the onset of the pandemic, continent-wide gross domestic product (GDP) growth had been projected by the African Development Bank to reach 3.4 percent this year. However, in both scenarios modelled by the AU study titled ‘Impact of the coronavirus (COVID 19) on the African Economy’, GDP will now shrink.
Under what the AU researchers deemed their realistic scenario, Africa’s economy will shrink 0.8 percent, while the pessimistic scenario said there would be a 1.1 percent dip.
Up to 15 percent for foreign direct investment could disappear. According to the study, African governments could lose up to 20 to 30 percent of their fiscal revenue, estimated at 500 billion in 2019.
