Economic outlook 2021: now is the time to build reserves
How do you foresee economic conditions playing out in 2021?
PROF JOHANN KIRSTEN (JK) is the director of the Bureau for Economic Research. KULANI SIWEYA (KS) is an agricultural economist at Agri SA.
JK: With higher business confidence and pent-up demand, there’ll certainly be economic recovery, and we could see positive economic growth in 2021. However, it will take the South African economy until 2025 to reach the GDP levels of December 2019. This is not good for employment or inequality, and will increase poverty levels. And if the phasing out of the income support schemes is added, then the true extent of the blow to income from lockdowninduced business closures and the large number of retrenchments will be laid bare.
A second domestic wave of COVID-19 would be another major damper on consumer demand.
A successful roll-out of
