While South Africa’s hard lockdown has clearly helped to flatten the Covid-19 curve, the economic data paints a gloomier picture.
According to the Bureau for Economic Research (BER), data released last week further highlights the severe impact that this has had on the economy.
“In April, SA recorded a massive trade deficit of R35.02bn as exports tanked by 55% M/M,” according to a statement from the organisation.
“In addition the National Treasury said gross tax revenue was down by 9% Y/Y in April with corporate tax receipts plunging by 65%.
While the impact on the government budget was limited by the fact that government expenditure declined by a large 17% Y/Y, the organisation predicts that the revenue numbers will worsen, while expenditure should pick up.
“This is projected to result in a main budget deficit for 2020/21 that exceeds 15% of GDP.”
