New lockdowns will hamper recovery – Sakeliga
30 November 2020
Various economic indicators are illustrating a difficult return to normal business conditions. New and lingering lockdown measures – locally and abroad – are likely to weigh down incomes and consumer confidence, which will hamper South Africa’s already frail recovery.
Many countries, especially in Europe, have reinstated lockdown measures. These measures are affecting travel and production and will increase pressure on South Africa’s frail recovery from hard lockdown of the second quarter of 2020.
This is according to the Sakeliga-ETM Economic Update for Business Decision-making released today. The November report considered local and global macro-economic trends relevant to businesses.
The main conclusion of the report is that economic activity and production, while recovering since the adverse levels of the lockdown, remain weaker than before. Lingering after-effects of lockdowns, Covid fears and supply disruptions are expected to constrain commerce for some time to come. This will hamper employment and investment and increase pressure on South Africa’s fiscal position.