WILLIAM GUMEDE: There is a dire need to boost SA’s stimulus package
Countries such as the US, Germany, India and Brazil have launched help for all sectors — SA needs to follow
To prevent Covid-19 from destroying their economies many dynamic countries have introduced large emergency economic stimulus packages that comprise significant proportions of their countries’ GDPs. These combine monetary and fiscal measures, prioritising injecting cash into the wider economy, rescuing vulnerable businesses, supporting self-employed individuals and providing support to the unemployed.
Many countries rightly see the Covid-19 peril as similar to a war situation, which demands extraordinary measures not usually used in peace time. Some countries are funding their stimulus packages through debt, setting aside existing fiscal and monetary restrictions or using reserves kept for emergencies.