Post-COVID-19 Recovery and Resilience: Leveraging Reforms for Growth and Inclusion in Sub-Saharan Africa
34 Pages Posted: 25 May 2021
Date Written: February 1, 2021
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.
JEL Classification: O40, O11, O50, O55, P16, G10, E25, E02, J20, J08
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