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Economic Effects of the COVID-19 on Central Africa

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COVID-19 pandemic impact on Central Africa - Main channels

• China is the main trading partner of Central African countries: Slower growth in China (and in the rest of the world) could reduce demand for many Central Africa's export products • As factories are closing throughout the world, reduction in demand of raw material will impact non-oil exports of all Central Africa countries • Oil represents top export commodity of many countries in the sub-region:
Reduction in oil prices will impact the budget of most Central Africa countries. Drop in oil prices down to US$30 a barrel over one year could mean massive losses in export revenue for Central African economies • Some countries such as Sao Tome on Principle are highly dependent on tourism: Travel restrictions in Europe will dent the islands' revenue • Current and budgetary deficits will further hold back public and private investment, which is essential for supporting economic growth