If ever there was a time that the country’s economy has found itself in a dire position, with unemployment above 40% and Covid’s foot on the country’s throat, it’s now, weeks away from Christmas and New Year.
This morning the Bureau for Economic Research reports that the projected real GDP recovery in the year’s last quarter (Q4), from contraction in the third quarter, was already facing downside risks.
This after the prolonged steel sector strike in October, as well as the sporadic periods of load-shedding that ran into November.
Says the Bureau: “The likely further rise in Omicron-driven Covid-19 cases, the threat of stricter lockdown measures, and the sudden foreign tourist cancellations, place additional downside pressure on Q4 GDP.
“Depending on the length and severity of the domestic fourth wave, this may also have adverse spillover effects into economic activity during 2022 Q1.
“Harsher Covid-19 lockdown restrictions will depend on hospitalisations and the pressure on the health sector.”
