Looking Beyond COVID-19

Deeper cooperation with China has helped Africa gain valuable assets for future development

While the world is still struggling with the novel corona-virus pandemic, it now has another challenge to deal with – an unprecedented economic recession. In an interview with ChinAfrica, Moustapha Kassé, Honorary Dean of the Faculty of Economics and Management of Dakar University and member of the Academies of Science and Technology of Senegal, gives his views on the current situation and how the world is changing. Excerpts of his views follow:

ChinAfrica: What are your forecasts for the world economy as the COVID-19 pandemic continues?

Moustapha Kassé: The COVID-19 health crisis has had the effect of a neutron bomb on the entire world economy, negatively affecting all economic, financial, technological and social production systems. The sectors most affected are those most exposed to globalization: production of goods and services; most strategic raw materials such as oil; air, road and maritime transport; tourism; catering and arts and culture.

At the macroeconomic level, all economies are experiencing decreases in their GDP, around 3 percent globally, and over 4 percent for Africa. That has dragged down indicators such as deficit in public finances, inflation, unemployment and poverty, with the combined effect of rising social insecurity. This is also shown by the magnitude of the resources committed to the recovery. According to economic stimulus plans of many countries, around 1.5 trillion euros are needed for Europe, $2.5 trillion for the United States, and $150 billion for Africa.