Economist forecasts further contraction to SA economy

Economist forecasts further contraction to SA economy

It's going to take a lot more than a stronger Rand, to lift us from our financial woes. 

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That's economist Dawie Roodt's perspective on the recovery of our economy and currency, which suffered severe blows due to the COVID-19 global pandemic. 

A total lockdown at the end of March saw most businesses in the country grind to a halt. 

The Rand's strengthened to an 11 week high and recovered by 5.6% in May. 

READ: Mbalula: Reopening of airports will ‘reignite’ economy

According to projections, though, our GDP could shrink by 16% this year. 

Roodt isn't too optimistic.

"The fact that the Rand is doing better today or the last couple of days does not necessarily mean that the South African economy is going to do better," he says. 

Roodt continued: "What we are probably seeing is that some of the money that has left South Africa is returning now and it is certainly overtime going to assist the South African economy, but we still can expect a significant contraction in the economy for 2020. 

"A stronger Rand does not mean that we're not in a recession anymore."

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