1. The COVID-19 pandemic induced an unprecedented economic shock caused by the reactions of governments to an unknown disease. In 2020, the Global GDP decreased by 3.2% and 255 million full-time job equivalents were lost relative to the fourth quarter of 2019. Some 120 million people are estimated to have fallen into extreme poverty. While the latest IMF World Economic Outlook projects growth of 5.9% for 2021, the recovery is uneven and is subject to significant downside risks. 2. The pandemic impacted North African economies in different ways and at varying degrees, because of differences in their economic structures, integration to global value chains, and the intensity and speed with which governments responded to both the health crisis and its economic and social consequences. In 2020, excluding Egypt, the GDP of the subregion as a whole contracted by 1.6%, and by 5.8%. While Egypt maintained growth, the economies of Tunisia and Morocco shrank by 8.8% and 6.3% respectively. Unemployment increased substantially in all countries, peaking to 12.4% in the subregion.
