S Africa's economic recovery will take two years, says business forum

The pandemic has also seriously hurt the business sector with thousands of job losses and enterprises shutting shop. Head of Business for South Africa (B4SA), economic workgroup, Martin Kingston said, "Against our latest modelling scenarios we expect that it will take a minimum of two years for the South African economy to recover to pre-COVID-19 levels, keeping in mind that South Africa's economy was already weak at the start of 2020.” The B4SA expects Gross Domestic Product to contract between 8 to 10 per cent in 2020 due to the pandemic.

The South African economy will take at least two years to recover from the COVID-19 pandemic, a leading business forum said on Tuesday. The coronavirus has claimed 7,067 lives with 4,52,529 confirmed cases in the African nation. Around 2,75,000 people have recovered from the disease. The pandemic has also seriously hurt the business sector with thousands of job losses and enterprises shutting shop.

Head of Business for South Africa (B4SA), economic workgroup, Martin Kingston said, "Against our latest modeling scenarios we expect that it will take a minimum of two years for the South African economy to recover to pre-COVID-19 levels, keeping in mind that South Africa's economy was already weak at the start of 2020." The B4SA expects Gross Domestic Product to contract between 8 to 10 per cent in 2020 due to the pandemic. The coronavirus lockdown in South Africa is in its fourth month, resulting in a large number of small and medium business closing down.

A significant number of large businesses are also in distress with job losses of about 1.5 million expected by the end of 2020. The B4SA said based on the latest statistical modeling the national COVID-19 infection rate will peak in August 2020 with daily mortalities peaking by late-August or early September.

"We also expect the infection rate to have a long tail-off and for the virus to remain a reality of daily life for up to two more years, the B4SA said. While the challenges South Africa faces in addressing the COVID-19 crisis will pass, rejuvenating the economy and rebuilding society would require a collective focus in the future to accelerate inclusive economic growth and employment, the forum said.

"B4SA, in collaboration with (four other national business bodies) and the Minerals Council, has formulated an integrated accelerated economic recovery strategy which harnesses South Africa's potential in the shortest possible time by leveraging all resources -- across government, business, and civil society -- to address the economic and social challenges we face," it added..