JOHANNESBURG - South African business confidence slumped to a seven-month low in March even before the full impact of the coronavirus pandemic and the country losing its last investment-grade credit rating was transmitted through the economy.
That’s the lowest number since August, when weak economic growth and rising unemployment provoked a wave of xenophobic violence and prompted warnings from business groups and analysts that the country may be forced to seek assistance from the International Monetary Fund. The economy has since slumped into a recession and could contract as much as 4% this year as a 21-day nationwide lockdown aimed at slowing the spread of the pandemic weighs on output, according to the Reserve Bank.
While Finance Minister Tito Mboweni has said the government could consider approaching the IMF for assistance to fight the pandemic, senior officials in the ruling ANC and its alliance partners rejected that, saying it could undermine the nation’s sovereignty.
busrep