• Privacy Policy
  • Terms
  • About us
  • Contact Us
  • Staff Email
Wednesday, September 17, 2025
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Foreign

North Africa will witness economic contraction in 2020

The Matters Press by The Matters Press
July 15, 2020
Reading Time: 2 mins read
0
Maritime workers begins strike July 3

Port

RELATED POSTS

Leap in non-oil exports gain of Nigeria:s economic diversification ‎

Think Tank ‎projects 17% inflation rate by year-end, urges CBN to ease benchmark rate ‎

‎GROUP LAUDS INSURANCE SCHEME FOR RETIREES IN NIGERIA. ‎

By Tanko Mohammed

In 2020, North Africa region will face an economic contraction forecast between 0.8 and 2.3%.

According to North Africa Economic Outlook 2020 published by the African Development Bank (AfDB), socioeconomic stability, social inclusion and human capital development are prerequisites for resilience and emerging from the crisis.

The tourism and industrial sectors in North Africa are likely to be hardest hit by the COVID-19 pandemic, according to the 2020 edition of the North Africa Economic Outlook report.

Faced with an unparalleled crisis, the region’s countries implemented health and budget measures to curb the spread of the virus and protect their populations.

The economic slowdown, due to disruptions across several sectors, has had large-scale socioeconomic consequences.

The rapidity with which economic and other restrictions are being lifted in North Africa is raising uncertainty and suggests two distinct recovery scenarios. The first is based on a timeline for emerging from the crisis in July 2020. The second is based on the pandemic lasting through December 2020.

Under the first scenario, regional growth would fall by 5.2 percentage points, resulting in a decline in growth of ‑0.8%. In the second scenario, growth would fall by 6.7 percentage points, leading to a ‑2.3% decline. However, economic recovery is forecast for 2021, with regional growth of between 3% and 3.3%.

The North Africa Economic Outlook 2020 shows that the services, tourism and industrial sectors, which are the main contributors to the regional economy, have been severely affected by the numerous restrictions associated with the COVID-19 response.

The report suggests that the pandemic’s negative impact on global demand and the prices of basic goods is likely to increase fiscal deficits and current account imbalances in the region. In the worst-case scenario, the fiscal deficit in 2020 could average 10.9% of regional GDP.

In 2019, the fiscal balance, estimated at ‑5.6% of regional GDP, exceeded the African average of ‑4.7%.

Regarding the current account balance, North African countries recorded an average deficit of 4.4% of GDP in 2019.

Assuming a reduction in global demand of 7.9% and a crude oil price of $20 per barrel, the worst-case scenario suggests a deficit of 11.4% of GDP in 2020. This situation is attributable mainly to the deficits of oil-exporting countries, 20% and 19.8% of GDP in Algeria and Libya respectively.

This is true also of Mauritania (17%) and Tunisia (12.2%), whose main trading partners, China and Europe, are expected to be in recession in 2020.

The report also emphasises the non-inclusive nature of growth in North Africa. Social and regional disparities, already significant, have widened as a result of the pandemic. The report recommends tackling them by undertaking structural reforms to increase public-sector efficiency and private-sector competitiveness to create more jobs.

The report calls on North African countries to continue to implement fiscal measures to protect affected households and businesses.

The development of the agro-industrial sector is also recommended to promote local agricultural value chains. Further, countries should work toward greater trade openness and integration, in the context of the African Continental Free Trade Area (AfCFTA).

The Bank recommends investing in human capital and skills as an essential condition for accelerating economic development.

Tags: North Africa
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

2023 maritime, shipping outlook force experts to call for aid
Economy/Technology

Leap in non-oil exports gain of Nigeria:s economic diversification ‎

September 17, 2025
NBS reports increase in Inflation
Economy/Technology

Think Tank ‎projects 17% inflation rate by year-end, urges CBN to ease benchmark rate ‎

September 17, 2025
Old pension scheme beneficiaries get a boost in entitlements
Economy/Technology

‎GROUP LAUDS INSURANCE SCHEME FOR RETIREES IN NIGERIA. ‎

September 14, 2025
Nigerians to own brand new vehicles, goods through new credit scheme initiative
Economy/Technology

‎Tinubu never abandoned the North, TMSG insists

September 12, 2025
Trading in Nigerian stock market dips further N83bn
Economy/Technology

Tinubu’s pro-business model triggers surge in capital market – TMSG

September 10, 2025
Tinubu commits to economic reforms as Nigeria marks democracy day
Economy/Technology

‎Tinubu’s achievements daze gov., opposition leaders

September 10, 2025
Next Post
Osinbajo inspects TraderMoni command

Osinbajo unveils how Nigeria is using Covid-19 pandemic to re-set economy

Politics hampers NSE in 2018

Nigeria stock exchange records negative trading

Recommended Stories

Fraud in banking sector, mostly insider instigated

600 government’s bank accounts discovered in Benue

October 18, 2023
CIIN president tasks Insurance directors on manpower development

Insurance claims hit N318.2bn

March 23, 2023
Group bemoans level of crude oil theft

Settlement of NNPCL, Seplat dispute by Tinubu rewarding – TDF

June 19, 2024

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • Leap in non-oil exports gain of Nigeria:s economic diversification ‎
  • Think Tank ‎projects 17% inflation rate by year-end, urges CBN to ease benchmark rate ‎
  • ‎GROUP LAUDS INSURANCE SCHEME FOR RETIREES IN NIGERIA. ‎

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2025 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2025 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us