It will take two years for SA economy to recover to pre-lockdown levels - Economics professor

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South Africans must not expect an immediate resumption of pre-lockdown levels of business activity as the country starts to recover economically.

Johannesburg -

“At present the economic outlook is that SA’s GDP will contract by between 8% and 10% this year. If the economy’s basic resilience now comes to the fore as the remaining lockdown restrictions are steadily removed and we start to contemplate life after Covid-19, a positive GDP growth rate of between 2% and 3% is possible in 2021.

“This lack of an economic stimulus by government amid depressed private capital investment will continue to plunge and trap the economy into what is becoming a serial stagnation, characterised by episodes of technical recessions and rising unemployment rate,” Pamla.“It’s tragic that President Ramaphosa’s administration seems to be focused on implementing an economic framework of policies that do not place employment creation as a priority.

He said during the talks, the industry acknowledged the challenges facing the government in its efforts to stem the pandemic.

 

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