Consumer Confidence In Nigeria, South Africa Drops To Two- Year Low—-IMF

Consumption levels in Nigeria and South Africa fell to two year low due to the outbreak of coronavirus, the International Monetary Fund has said.

The Washington based lender also said that the impact of the pandemic on the two largest economies in Sub- Saharan Africa was yet to be fully felt by these economies.

The IMF made the disclosure in a Report on the Regional Economic Outlook for Sub-Saharan Africa titled, ‘Sub- Saharan Africa: A Cautious Re-opening.’
 

The report said, “In the first quarter of 2020, consumer confidence in Nigeria and South Africa declined to the lowest in two years although the impact of the Covid-19 shock had not been fully reflected yet.

“Lockdowns, weaker domestic demand, and the disruption in supply chains affected manufacturing activity.

The lender said there were high frequency indicators pointing to a sharp contraction in consumption and output in both Nigeria and South Africa in May .

The IMF said that the 5.4 per cent contraction in the Nigerian economy was largely due to the plummet in oil prices, lower oil production quota and declining activity.

It added, “Even if Sub-Saharan African countries avoid new lockdowns, slower global growth could weigh on activity through trade and financial links, and financial market dislocations could add to the stress.”