How could the covid-19 pandemic impact the economy of Burkina Faso?

Somlanare Kinda, Patrice Zidouemba () and Idrissa Ouedraogo ()
Additional contact information
Patrice Zidouemba: Université Nazi Boni
Idrissa Ouedraogo: Université Aube Nouvelle

Economics Bulletin, 2020, vol. 40, issue 3, 2034-2046

Abstract: Like other countries, Burkina Faso is affected by the spread of the coronavirus disease (Covid-19). This study analyzes the impact of the Covid-19 pandemic on Burkina Faso's economy. For this purpose, we have made use of a single country's computable general equilibrium model and formulated two alternative scenarios based on the likely duration of the pandemic. In the first scenario, we assume that the pandemic will last three (3) months, while in the second scenario, it spreads over six (6) months. The results indicate significant impacts on both macroeconomic and sectoral level and on households' well-being. First, economic growth could drop from 5.7 percent in 2019 to a range between +1.38 percent and -1.75 percent in 2020. Moreover, the unemployment is expected to grow (between +1.93 percent and +5.92 percent) because of a sharp drop in sectoral productions (ranging from -3 percent to -12 percent). In addition, our findings reveal a contraction of sectoral exports by -6 percent for extraction products (especially gold) to -16 percent for agricultural products (especially the cotton). Finally, the rise of consumer prices and growing unemployment will greatly dampen the purchasing power of households for all socio-professional categories.

Keywords: Africa; Economic Development; Computable General Equilibrium Model (search for similar items in EconPapers)
JEL-codes: C6 O1 (search for similar items in EconPapers)
Date: 2020-08-08
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I3-P178.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-20-00467

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().