Mboweni says country’s economy must keep moving through recession, coronavirus

As Covid-19 cases have almost doubled every two days since the first positive case was announced on March 5, a total of 62 cases have now been confirmed. This comes after the country slipped into a recession in the first week of March, the third recession since 1994.

Finance Minister Tito Mboweni, however, believes all is not lost, as the National Treasury quotes him reassuring the nation on measures to sail past the pandemic while steering clear of a prolonged recession.

In a tweet, the minister said the country’s objective was to keep the economy moving.

“It must continue to operate.”

Should the economy grind to a halt, tax revenue would lesson and less tax revenue ultimately means government would be unable to finance several ventures.

“Whatever we do, let’s make sure that we don’t get into a prolonged recession. Let’s not panic… That’s what we need to do by keeping things moving. Stay calm but follow the protocols.”

South Africa remains in a difficult position as the negative health and economic effects of the pandemic are yet to be felt. Faced with the prospect of a wave of patients overwhelming an already stretched public health system, President Cyril Ramaphosa has called for calm amid fears, as several members of the public have rushed to stores in a state of panic.

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