How the national state of emergency will affect the economy
CAPE TOWN –
It was currently too early to tell what the economic impact on South Africa of the national emergency measures to combat the spread of the coronavirus would be, as the South African Reserve Bank (Sarb) has not yet met to consider a repo rate cut, nor has the Treasury yet announced any fiscal policy support measures.
It was currently too early to tell what the economic impact on South Africa of the national emergency measures to combat the spread of the coronavirus would be, as the South African Reserve Bank (Sarb) has not yet met to consider a repo rate cut, nor has the Treasury yet announced any fiscal policy support measures.
Nonetheless the containment measures announced by the South African government on 15 March, as well as those of other countries, was likely to lead to a contraction in economic activity in both the current quarter and the second quarter, with some economists even saying that we could have a contraction in the full year for the first time since 2009.
Nedbank chief economist Nicky Weimar said she had already expected the economy to remain in recession in the first quarter prior to outbreak of COVID19 and the national emergency/disaster declaration.
Source: iol.co.za
