Covid has made SA’s economic morass even worse but the government response has been woeful – it’s time to exploit our under-used resources
14 March 2021 – 00:00
The crippling effects of Covid-19 on most economies have seen governments employing countercyclical measures, adopting unprecedented levels of fiscal stimulus to boost economic activity. A McKinsey & Co report, “The $10-trillion rescue: How governments can deliver impact”, ranked the level of relief as a percentage of GDP: Japan 21%, Germany 33%, US12.1%, Brazil 5.5%, India 10% and France 14.6%.
Offsetting the contractions emanating from exogenous shocks requires the employment of tools and policy instruments that stimulate aggregate demand, such as cash transfers to households, debt restructuring for small, medium and micro enterprises and liquidity support for companies…