Ina Opperman
Business Journalist
3 minute read
14 Sep 2020
11:34 am

SA economy in V-shaped recession with W-shaped recovery

Ina Opperman

There is no reason for optimism about the Johannesburg Stock Exchange and the country’s economy.

Picture: Moneyweb

South Africa is currently in a V-shaped recession, although it is more likely that our recovery will be W-shaped. A V-shaped economic recession starts with a sharp decline, followed by a strong, fast recovery that is generally fairly quick and describes the shape of the market's performance. A W-shaped recession and recovery represents a double-dip. “I have even heard the square root sign being used to describe the recession and recovery. This is all a bit academic when the recovery for most people will be L-shaped. On the other hand, does it really matter when South Africa has such deep-rooted,...