STRAIGHT TALK: Mitigating the economic fallout from Coronavirus
21 March 2020
Covid-19 will deliver a massive, sudden and potentially deadly blow to many businesses in our economy – indeed, this has already begun. This has introduced an unprecedented challenge at a time when our economy was already in recession. The damage can and must be mitigated.
Government now needs to do everything it can to assist as many businesses as possible to survive this “sudden stop” situation so that they are still operating and can recover fully when the Coronavirus threat blows over in four to six months’ time, as it is generally expected to do.
On Sunday, President Ramaphosa showed decisive leadership in announcing a virus containment plan. He now needs to match that with a comprehensive economic support package that takes as much financial pressure as possible off businesses and households in the coming months.
Otherwise our national effort to limit the damage from Covid-19 will come at a terrible, perhaps even unjustifiable, economic cost. Small businesses will not survive and the households that rely on them will suffer enormously without support from government. The stringent curbs on restaurants for example, introduced on Wednesday, will be crippling to those in that sector.