SA's floating economic wreckage may sink under corona storm
Coverage of the economic wreckage Covid-19 is causing in developed markets is everywhere. Harder to find is the damage it is doing to emerging economies. But the damage is deep. The crisis has led half of International Monetary Fund member countries to request assistance. IMF chief Kristalina Georgieva says developing economies need $2.5-trillion in funding, more than double the $1-trillion it has available. The Washington-based Institute of International Finance (IIF) says outflows of emerging-market securities topped $83bn in March, with equity outflows reaching $40bn. "All of this points to a sudden stop in emerging markets due to the combination of Covid-19 uncertainty, large oil price and financial shocks."
The IIF's analysis highlights the countries most distressed by the fallout, unhappily saying that SA is one of the most stressed emerging economies, so much so that it needs to enter an IMF programme.