Answer to Question #278640 in Microeconomics for Zeerh

Question

Explain the economic impact of covid 19 on the south African economy

Answer 1

The impacts of the outbreak in the rest of the world, and hence on demand for South Africa's exports, are less severe than those of the internal lockdown, but they are nevertheless significant by any standard measure. The 'Quick' restoration scenario results in a GDP fall of around 5% by the end of 2020, an economic outcome that was regarded spectacularly disastrous just over a month ago. In keeping with the 'Slow' and 'Long' recovery scenarios, prolonged Covid-19 impacts would result in even lower GDP consequences.