Post-Covid-19 Recovery and Resilience: Leveraging Reforms for Growth and Inclusion in Sub-Saharan Africa

Paola Ganum and Vimal Thakoor

No 2021/045, IMF Working Papers from International Monetary Fund

Abstract: Covid-19 has exacerbated economic and social vulnerabilities across Sub-Saharan Africa (SSA). There is a risk that growth could be lower for longer, with a setback to development. Post-pandemic reforms thus become even more important, especially with constrained scope for fiscal and monetary stimuli. Reforms could boost per capita growth by an additional 0.3-1.3 percentage points, relative to the 1.9 percent average since 2010. Such growth would reduce per capita income doubling time from 37 years to about 22 years. Low-income countries stand to gain the most from reforms. The largest gains come from governance, products markets, and factor accumulation. Importantly, these reforms can be implemented in the post-pandemic environment characterized by weaker social and distributional outcomes.

Keywords: COVID-19; Growth; Development; Political Economy; Sub-Saharan Africa.; WP; product market reform; labor market market index; demand management; per capita income; frontier country; governance reform; labor market indicator; labor market rigidity; product market efficiency; SSA countries' performance; SSA economy (search for similar items in EconPapers)
Pages: 33
Date: 2021-02-19
New Economics Papers: this item is included in nep-afr
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