Niger : Requests for Disbursement Under the Rapid Credit Facility and for Rephasing of Access Under the Extended Credit Facility -Press Release; Staff Report; and Statement by the Executive Director for Niger

Author/Editor:

International Monetary Fund. African Dept.

Publication Date:

April 23, 2020

Electronic Access:

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Summary:

The COVID-19 pandemic is inflicting significant damage on Niger’s economy at a time when the government is already faced with the deteriorating security situation across the Sahel region. A first local infection was reported on March 19, 2020 and a state of emergency was declared on March 27, 2020. The authorities adopted a comprehensive response plan, comprising health care measures and steps to alleviate the social and economic fallout from the crisis. Growth is likely to drop to 1 percent this year as exports slow, large-scale foreign-financed projects face delays, financial conditions tighten, and domestic containment measures take their toll. Public finances are bound to be hit hard with the deficit widening to 5 percent of GDP and a financing gap of 3 percent of GDP emerging. It is mirrored in the balance of payment, which deteriorates primarily on account of lower investment by regional banks into government paper, reduced FDI, and a deterioration of the trade balance.