The Covid-19 crisis means our leadership cannot continue with its wait-and-see approach
It says much about the situation in which the world finds itself that the reaction to confirmation that SA is in the middle of the longest recession in more than a decade was that it could have been worse. The bad news is that it will get a lot worse.
As bad as the 2% contraction in the first quarter of 2020 was, it could hardly be blamed on the pandemic, which didn’t take hold in SA until late in that period. The lockdown came four days before the quarter was up and two of those were over a weekend. It’s no wonder the outlook is so bleak, with the next release to reflect the almost universal lockdown during April and only partial easing thereafter.
That meant SA started 2020 with an unemployment rate of crisis proportions — at about 29% — and it was no big surprise when data showed that this had edged up to more than 30% in the first three months of 2020. And that will surely get worse, with some economists saying job losses this time could be double the estimated 900,000 that resulted from the global financial crisis.
SA’s approach before the Covid outbreak, therefore, seemed a case of hobbling along and hoping for the best. Not surprisingly, it didn’t work and the country slumped into recession — defined as consecutive quarters of declining GDP — twice in Ramaphosa’s presidency, which only dates back to early 2018.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Spoiling for a fight no one will winSOWETAN | At a time when experts expect infections in Gauteng to spike significantly in the coming weeks, creating spaces of potential contamination is irresponsible and may carry deadly consequences.
Read more »
Sho Madjozi on Burna Boy ‘beef’: I am not scared of anyone'They don’t even let him tweet for himself because they know how he is.'
Read more »
WATCH | Prince Kaybee slams 'misconception' that he’s 'pompous''I get this on social media a lot, that I am pompous, I'm arrogant, I've got a big head and I'm feeling myself ... whatever that means ...'
Read more »
WATCH: How SA has sunk deeper into recessionCitadel chief economist Maarten Ackerman talks to Business Day TV about the ailing economy
Read more »
Reality that Covid-19 is here has really hit home hardWhen the Covid-19 pandemic was declared a few months ago, I was not too panicked. I followed with mild curiosity as countries far away battled with the virus.
Read more »
WATCH: How SA has sunk deeper into recessionCitadel chief economist Maarten Ackerman talks to Business Day TV about the ailing economy
Read more »