Positive trajectory means hope for the South African economy

As the world adjusts to the new normal and gradually returns to being economically operational, South Africa is starting to see a positive change in its global economic position. In a statement released on Wednesday April 7, 2021, the Ministry of the Presidency responsible for: Planning, Monitoring and Evaluation, announced that the International Monetary Fund (IMF) has revised upward growth prospects for South Africa by 2 , 8% to 3.1% for 2021. The highlight of this announcement is that it follows the largest annual decline in economic activity that the country has known since 1946.

According to the IMF, the change in growth forecasts is attributed to additional budget support in major economies and global participation in the CoVID-19 vaccination trip. As a country that has recently launched its own immunization rollout program, it is expected that this program will continue to have a positive effect and provide the country with the economic recovery it desperately needs. The positive outlook confirms and encourages the plans put in place by the government to increase economic activity despite difficult global economic conditions.

As much as this announcement puts the country on the road to recovery, the destination to see tangible results remains a long journey. The pandemic has affected the South African economy in a very unfathomable way and the impact varies in each industry. The country has faced many economic and social challenges in the past, such as the global recession and rising unemployment rates, but South Africa‘s ability to overcome is critical to its survival.

The success of its economic and social recovery is in the hands of everyone, including government, individuals, businesses – especially small businesses that play a key role in growing the economy and creating jobs. Each citizen owes himself and future generations to dig deep and remember the power and tenacity of the country. We’ve been through challenges before, but what’s important is that when everything seems to fall apart, our real strength is in our resilience and solidarity.

Sources:

https://www.gov.za/speeches/government-revised-upward-growth-outlook-south-africa-28-31-2021-7-apr-2021-0000#:~:text=Government%20welcomes%20the % 20International% 20Monetary, economic% 20interventions% 20mixed% 20dures% 20conditions.

Katy F. Molnar