The 10% of GDP emergency fiscal response announced by South Africa’s president last night will help to alleviate some of the strains in the economy caused by the lockdown. But with this coming one month after lockdown started, a lot of damage will already have been done. What’s more, the design of the measures highlight continued concerns in the government about the weak fiscal position – a return to austerity seems on the cards in 2021, which will hold back the recovery.
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