Update on the Economic Impact of the 2014 Ebola Epidemic on Liberia, Sierra Leone, and Guinea
The Ebola epidemic continues to cripple the economies of Liberia, Sierra Leone, and Guinea. The crisis is resulting in flat or negative income growth and creating large fiscal needs in all three countries, as they work to eradicate the virus. This...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/12/20454884/update-economic-impact-2014-ebola-epidemic-liberia-sierra-leone-guinea http://hdl.handle.net/10986/20599 |
| Summary: | The Ebola epidemic continues to cripple
the economies of Liberia, Sierra Leone, and Guinea. The
crisis is resulting in flat or negative income growth and
creating large fiscal needs in all three countries, as they
work to eradicate the virus. This update presents the World
Bank s most recent analysis of the economic effects of the
Ebola epidemic on the three countries. All three had been
growing rapidly in recent years, and into the first half of
2014. But GDP growth estimates for 2014 have been revised
sharply downward since pre-crisis estimates. Projected 2014
growth in Liberia is now 2.2 percent (versus 5.9 percent
before the crisis and 2.5 percent in October). Projected
2014 growth in Sierra Leone is now 4.0 percent (versus 11.3
percent before the crisis and 8.0 percent in October).
Projected 2014 growth in Guinea is now 0.5 percent (versus
4.5 percent before the crisis and 2.4 percent in October).
The World Bank s October report on the economic impact of
Ebola (report no. 91219 released at the 2014 Annual Meetings
of the IMF and the World Bank) found that if the epidemic
continues in the three worst-affected countries and spreads
to neighboring countries, the two-year regional financial
impact could range from a "low Ebola" estimate of
$3.8 billion to a "high Ebola" estimate of $32.6
billion. These scale estimates of potential impact remain
valid: the epidemic is not yet under control. Containment,
combined with a full-fledged financial recovery effort to
restart business activity and bring back investors, are now
both therefore urgently needed for the region to improve on
the downbeat forecasts in this update. |
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