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| Romuald S Kinda, Patrice R Zidouemba and Idrissa M Ouedraogo |
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| ''How could the covid-19 pandemic impact the economy of Burkina Faso?'' |
| ( 2020, Vol. 40 No.3 ) |
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| Like other countries, Burkina Faso is affected by the spread of the coronavirus disease (Covid-19). This study analyzes the impact of the Covid-19 pandemic on Burkina Faso's economy. For this purpose, we have made use of a single country's computable general equilibrium model and formulated two alternative scenarios based on the likely duration of the pandemic. In the first scenario, we assume that the pandemic will last three (3) months, while in the second scenario, it spreads over six (6) months. The results indicate significant impacts on both macroeconomic and sectoral level and on households' well-being. First, economic growth could drop from 5.7 percent in 2019 to a range between +1.38 percent and -1.75 percent in 2020. Moreover, the unemployment is expected to grow (between +1.93 percent and +5.92 percent) because of a sharp drop in sectoral productions (ranging from -3 percent to -12 percent). In addition, our findings reveal a contraction of sectoral exports by -6 percent for extraction products (especially gold) to -16 percent for agricultural products (especially the cotton). Finally, the rise of consumer prices and growing unemployment will greatly dampen the purchasing power of households for all socio-professional categories. |
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| Keywords: Africa, Economic Development, Computable General Equilibrium Model |
JEL: O1 - Economic Development: General
C6 - Mathematical Methods and Programming: General |
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| Manuscript Received : May 16 2020 | | Manuscript Accepted : Aug 08 2020 |
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