Answer to Question #92511 in Economics of Enterprise for Nangamso

Question

Discuss in full the economic implications of the loan agreement by china to South Africa. Refer to advantages and disadvantages of this event for the economic wellbeing of South Africa (25 marks)

Answer 1

The loan agreement by China to South Africa will make possible to close a debt and recession gap through the increase of government spending. But it also means some obligations of South Africa to China, that should be done.