The Sub-Saharan region is projected to experience -1.6% economic growth in 2020 as its major economies face economic contraction. A Deloitte report reveals that all ten major economies in the region will experience a drop in GDP growth in 2020, with five countries recording negative growth.
In the current year, South Africa is projected to suffer -5.8% GDP growth, Zambia -3.5% GDP growth, Nigeria -3.4% GDP growth, and DRC -2.2% GDP growth. On the other hand, Ethiopia and Senegal are predicted to record the strongest growth in the region at 3% GDP growth each.
SEE ALSO: Kenya Overtakes Angola to Become 3rd Largest Sub-Saharan Economy
Countries that are least resource-intensive like Kenya, Tanzania, and Ethiopia, are expected to maintain positive economic growth, although at a slower pace than in 2019. However, resource-intensive and energy-intensive countries like South Africa, Nigeria, and Zambia are projected to suffer negative economic growth.
“The economies worst hit by the fallout from the Coronavirus pandemic will be those who are dependent on the export of oil and minerals, such as Nigeria, Angola, and South Africa,” a World Bank report noted.
The report projects Africa’s GDP Growth in 2020 to be -0.8% from 3.2% in 2019.
The world bank said that Sub-Saharan Africa could need up to $100 billion in stimulus packages.
Read Also: Nigeria Oil Revenues Likely to Decline by $17Bn in 2020
