Answer to Question #192987 in Microeconomics for chikzo

Question

Critically discuss the positive and the negative effects of COVID19 on the South African economy.

Answer 1

Positive effects of COVID-19 on the South African economy

Some people have secured unexpected employment opportunities due to COVID-19. Some companies have shifted to making of masks to meet the high demand. These companies have employed masks distributors hence earning a living. Additionally, selling of sanitizers have created employment opportunities, as some south Africans buy them from factories and sell to government and education institutions therefore earning a source of income.

Negative effects of COVID-19 on the South African economy

The disease has made a good percentage of the population to lose permanent jobs and this has increased the level of poverty.

Sectors like catering and accommodation or in one word tourism, has been closed as tourists fear the disease. Tourism is a countable source of capital in south Africa and its suspension has decreased the economy of this country.

Moreover, export or import of goods have been stopped due to COVID-19; therefore, the country cannot earn foreign excange which has again affected the economy negatively.