This is going from bad to worse for South Africa. For the fourth time since the beginning of the year, the central Bank of South Africa reduced its rate. On Thursday, it lowered its key rate by 50 points to 3.75 %. In the process, she indicated that the GDP would fall by 7 % this year, and this, under the effect of the health crisis, the Covid-19 which has had an economic impact pretty devastating.
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A disturbing development
It must be remembered that last month, the central Bank had budgeted for a decline in already a result of 6,1% of the south african economy, but still far enough away from the 7 % announced recently. At the same time, the rand has depreciated by 22.9 % since January, and inflation is expected to reach an average of 3.4% this year, said the bank's governor, Lesetja Kganyago. While the world Bank has warned that the sub-saharan Africa could enter its first recession in 25 years because of the epidemic, the South Africa confirms resolutely that the situation will be very difficult if the epidemic continues to progress. In this may 23, the South Africa is the African country most affected by the pandemic Covid-19. It has exceeded the level of 20 000 confirmed cases, and has recorded 397 deaths (behind Egypt, which has lost 707 of its inhabitants and Algeria, 597) for 10 104 healings (in front of the Morocco, 4 377). A difficult situation for this country of 57 million people forced into a confinement with strict weighing from 27 march that the government has tried to soften it at the beginning of the month from may to meet, this time in the economic emergency to revive a part of the economy.
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Date Of Update: 23 May 2020, 02:33