Covid-19 and SA's macroeconomic responses: Lessons from the Great Recession of 2007-09

CATEGORY: Media and COVID19
DATE: 8 May 2020
AUTHOR: Daily Maverick

By Alexis Habiyaremye, Peter Jacobs, Pelontle Lekomanyane and Olebogeng Molewa

Reliable forecasts suggest that SA’s national economic output for this year might slump by at least 5%, a situation likely to worsen as the Covid-19 depression endures. In response to this economic crisis, the country started phasing in a multifaceted macroeconomic recovery plan. However, it is unclear if this plan is adequate in light of the acuteness of the socioeconomic crisis and if it incorporates measures to evade policy mistakes of the global Great Recession of 2007-2009.

Dr Alexis Habiyaremye is incoming Associate Professor in the Chair of Industrial Development at the University of Johannesburg and Senior Research Specialist in the Inclusive Economic Development division of the Human Sciences Research Council (HSRC). Dr Peter Jacobs is research director and strategic lead in the Changing Economies section of the Inclusive Economic Development division of the HSRC. Pelonthle Lekomanyane is junior researcher in the Inclusive Economic Development division of the HSRC.

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