Covid-19 plunges South Africa’s GDP by 7%

Things are going from bad to worse for South Africa. For the fourth time since the start of the year, the Central Bank of South Africa cut rates. On Thursday, it lowered its key rate by 50 points to 3.75%. In the aftermath, she indicated that the GDP would fall by 7% this year, and this, under the effect of the health crisis of Covid-19 which had a fairly devastating economic impact.

It should be remembered that last month, the Central Bank had expected an already substantial decline of 6.1% in the South African economy, but still quite far from the 7% announced recently. At the same time, the rand has depreciated 22.9% since January and inflation is expected to average 3.4% this year, said bank governor Lesetja Kganyago. While the World Bank has warned that sub-Saharan Africa could enter its first recession in 25 years due to the epidemic, South Africa resolutely confirms that the situation will be very difficult if the epidemic continues to progress. As of May 23, South Africa is the country in Africa most affected by the Covid-19 pandemic. It exceeded the level of 20,000 confirmed cases, recorded 397 deaths (behind Egypt which lost 707 of its inhabitants and Algeria, 597) for 10,104 cures (before Morocco, 4,377). A difficult situation for this country of 57 million inhabitants forced into strict confinement weighing since March 27 that the government tried to soften in early May to respond this time to the economic emergency to revive part of the economy.

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South African Airways to be replaced by “a new airline”
Covid-19: South Africa on the trail of BCG
Disappearance of Mory Kanté, author of the planetary hit “Yéké Yéké”
Delhommais – From big food to hunger riots
Receive the Le Point.fr newsletter