NEVA MAKGETLA: Southern Africa on the short end again
Creditors simply refuse to fund the sort of aggressive fiscal stimulus that has boosted growth in the global North
SA’s economic wellbeing depends heavily on how well Southern Africa recovers from the pandemic. The region has been spared the worst of Covid-19, but in 2020 it saw a sharper economic decline than the rest of the world. Outside SA, the IMF forecasts it will grow 2% in 2021 — about a third as fast as the global economy.
That outcome arises from slow growth after the commodity boom ended a decade ago; the region’s weakness relative to international lenders, which cuts the scope for fiscal stimulus; and the incoherence of national and regional economic strategies. ..