Answer to Question #276566 in Marketing for beyonce

Question

Explain the economic impact of COVID 19 on the South African economy

Answer 1

Covid 19 led to GDP decline of about 5 per cent by the end of 2020 an economic outcome that would have been considered catastrophically bad a little more than one month ago. The COVID-19 shock economic impacts to South African economy is coming in three waves: (i) lower trade and investment from China in the immediate term; (ii) a demand slump associated with the lockdowns in the European Union and OECD countries; and (iii) a continental supply shock affecting domestic and intra-African trade. It is shaking commodity-driven growth models that had largely failed to create more and better jobs or improve well-being. On the health front, greater capacities to test, protect, treat and cure are essential. On the socio-economic front, policy measures should cushion income and jobs losses, while tackling the specific challenges of high informality.