Corona might suffocate the economy and 5 highlights from 'Vrye Weekblad'

Here's what's hot in the latest edition of the Afrikaans digital weekly

06 March 2020 - 08:44
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Passengers arrive from Hong Kong at Cape Town International Airport on January 29 2019, after being screened by health officials following the outbreak of the coronavirus in China.
Passengers arrive from Hong Kong at Cape Town International Airport on January 29 2019, after being screened by health officials following the outbreak of the coronavirus in China.
Image: ESA ALEXANDER/SUNDAY TIMES

The effects of the coronavirus could potentially cause the longest downward swing in the South African business cycle since the Second World War.

Data released by Stats SA this week shows that the local economy was in ICU before this new virus hit China — one of our most important trade partners — in December. Our GDP had shrunk for the second quarter in a row in Q4 of 2019 and, according to the official definition of the word, the country is in a technical recession.

It is not necessarily the virus itself that will affect economic activity, but rather the steps taken to limit the spread of it.  

In this week's edition of Afrikaans digital weekly Vrye Weekblad. we look at how corona might affect our already ill economy.


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Weakened growth in China is bad news for our exports. China is the main market for our iron ore, chrome, manganese and other commodities, and less growth means less need for them.  

The mining sector is particularly vulnerable to this, but the agricultural sector has already warned that the export of wool, fruit, vegetables, grains and red meat could be negatively affected.

Small business would also suffer. Niche products, such as the ends of shoelaces, are primarily produced in China, and if Chinese production is slow to resume, retailers would suffer.

Stocks might run out and the end result is higher prices.

Corona is also a threat to tourism. While China is not one of our main sources of tourists, it is an important growth market. Fear of being infected may lead to people postponing trips.

There can be no doubt that Covid-19 will damage our GDP outlook, and in all likelihood 2020 will be another year in which our economy stagnates.

Read the full article in this week's Vrye Weekblad


Must-read articles in this week's Vrye Weekblad

THE WEEK IN POLITICS | Deputy President David Mabuza is either incompetent, or a crook, or uninformed. But he could also be all three, writes Max du Preez.

FREE TO READ — DIY SERVICE DELIVERY | A bunch of people in Potchefstroom who realised things were not going to get better without their intervention rolled out a new service delivery model last year.

FEARLESS AND FIERY | Mbali Ntuli wants to be the next DA leader, but will the party's liberal royalty allow this fiery and outspoken woman to take over the reins?

VIOLENT KNOWLEDGE | We are going to have to act against those fuelling the violence on SA's campuses if we want to stop academic decline.

THE CLEAN ARMY | Adri Kotzé explains how she found her tribe in the household cleaning societies on social media.

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