The economy 2021 | A new epoch
Standard Bank chief economist reflects on the year that was 2020, and the prospects for 2021
The past year has been forbidding. The economic disruption has been grave and the social toll has been detrimental for many people. Still, one is tempted to ask, will 2021 mark the beginning of economic and social recovery, and healing from the pandemic’s psychological scarring?
The discovery of several effective vaccines offers the hope of an end to the pandemic this year and, with it, “ignition”.
Watch the video below:
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In concert with inoculation drives, governments will tilt towards lower lockdown stringency when it’s safe to do so and production will step up. The mixture of pent-up demand, high levels of personal savings, and the sheer delight to spend again points to a burst of consumerism. Moreover, the geopolitical backdrop is slightly calmer, public policy settings are supportive and firms’ capital expenditure programmes are enlivening.
Of course, the global recovery may be uneven and stuttering, and there is much that can still go wrong. There are also many grieving the loss of loved ones, and many more with wounded souls because of the mental and emotional drain of the pandemic. There’s probably never been a more poignant moment, at least in recent history, to amplify the need for a shared recovery.
Watch the video below | SA economic outlook in 2021
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For more information, visit the Standard Bank CIB website.
About the author: Goolam Ballim is chief economist at Standard Bank.
This article was paid for by Standard Bank CIB.