Lockdown could tip SA into most severe economic contraction in 100 years
7 April 2020
Based on its own estimates as well as those of private sector economists, the Institute of Race Relations (IRR) warns that South Africa should brace itself for a period of deep economic decline.
The most optimistic growth forecast predicts a roughly 2% decline in GDP, with less optimistic predictions anticipating a decline of up to 10% or more. The IRR has pencilled in a contraction of at least -5%.
The IRR warns that such a decline in growth would have a catastrophic effect on the lives and livelihoods of South Africans.
Says IRR analyst Nicholas Babaya: “The correlation between economic growth and living standards is very strong. We anticipate that South Africa’s pending economic crisis will translate into a severe decline in the living standards of almost all South Africans, wiping out much of the progress made in raising those standards after 1994.”