Brian Sokutu
Senior Print Journalist
3 minute read
23 Apr 2020
6:10 am

Economists cautiously optimistic over fiscal recovery plan

Brian Sokutu

'We knew we would need a fiscal stimulus. News of the IMF assisting with loans is also great as interest rates would be far lower than SA would get in an open market.'

A labourer arranges tomatoes in crates. Picture: Arif ALI / AFP

With an economist referring to President Cyril Ramaphosa’s announcement of a R500 billion socioeconomic stimulus as “a fiscal bazooka”, there has been positive, but cautious reaction from analysts to South Africa’s three-phase recovery plan during the Covid-19 global crisis. In a big-bang announcement since the outbreak of the coronavirus in the country, Ramaphosa this week unveiled a plan for socioeconomic recovery, with the first phase – the declaration of a national state of disaster – which he said included “a broad range of measures to mitigate the worst effects of the pandemic on businesses, communities and individuals”. Ramaphosa is on...