Reserve Bank warns of K-shaped recovery
Two-speed revival is expected across local sectors — as well as between developed and emerging nations
The SA Reserve Bank says that while it has been surprised by the robustness of the economic recovery from the Covid-19 recession, it is concerned it could turn out to be K-shaped, a term used to describe an uneven rebound from a recession in which some sectors grow rapidly while others continue to struggle.
That warning was contained in the Bank’s April 2021 Monetary Policy Review, a six-monthly report designed to broaden the public’s understanding of how it sets interest rates. In the report, which was published on Wednesday, the Bank cautioned that the risks to its current economic forecasts are greater than normal because of the high degree of uncertainty it had to contend with when making estimates for variables such as economic growth and inflation in the midst of the pandemic...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.