Covid-19 is expected to increase Africa’s debt to about 70% of the Gross Domestic Product (GDP), concludes a report presented Tuesday that considers the pandemic to be “an unprecedented threat” to financing the continent.
“Covid-19 poses an unprecedented threat to Africa’s development finance by creating new risks and exacerbating pre-existing vulnerabilities,” the document said, a partnership between the African Union (AU) and the Organization for Cooperation and Development Economic (OECD).
In its third edition, the report on development dynamics in Africa examines how the continent’s digital transformation can support large-scale job creation and generate new opportunities for young people.
According to the document, between 2019 and 2020, the relationship between taxes and GDP is expected to decrease by about 10% in at least 22 African countries, total national savings may fall 18%, remittances 25% and direct investment. abroad 40%.
Most African countries face their first recession in 25 years, with forecasts pointing to a slowdown in economic growth in 41 of the 54 countries in 2020, when in the financial crisis of 2009 only 11 countries went into recession.
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