Virus’ economic impact is SA’S big concern, reveals poll
A study by Statistics SA (Stats SA) has found that an overwhelming majority of South Africans are more worried about the economic impact of Covid-19 than their health.
Acting chief director for social statistics at Stats SA, Niel Roux, said while the pandemic reached South Africa later than most countries, it still negatively impacted South Africa.
“Since the lockdown period for South Africa started on 27 March 2020, more than half [60.1%] of respondents who participated in the online survey reported that they were very con- cerned or extremely concerned about the impact of Covid-19 on their own health,” Roux said.
“As far as the economy was concerned, 93.2% of respondents were very concerned or extremely concerned about the possible economic collapse of the country due to the Covid-19 pandemic.”
The study further showed that 88.9% of respondents are concerned about the health of vulnerable people like elderly family members; 88.2% are concerned about the overload of the health system and 79.7% cited civil disorder that may result as a consequence of the pandemic. Roux said of those who responded, 94.2% were living in formal dwellings, while 69.1% of respondents had a fulltime job, 11.6% were self-employed and 8.1% were unemployed based on self-reported employment status.
Finance Minister Tito Mboweni and Treasury director-general Dondo Mogajane this week painted a dire picture of the state of the South African economy.
Treasury’s scenarios presented to legislators showed that more than 7-million jobs could be lost as a result of Covid-19 and lockdown that has brought almost all economic activity to a standstill.
Arthur Kamp, the chief economist at Sanlam Investments, said the immediate threat to economic activity lies in an unfolding damaging negative feedback loop as business closures and social distancing decrease domestic demand.
“In turn, falling domestic demand reduces profits, adding pressure onto businesses, leading to declining investment spending and the retrenchment of workers. “This lowers consumption [demand] further. Business liquidations and individual insolvencies follow, fueling the downward spiral,” Kamp said. while the winter crop planting season begins,” Makube said. “The implications are reduced costs for farmers from planting, harvesting and distribution bearing in mind that the distribution of agricultural produce is dominated by road transport.”
The Department of Energy on Thursday said the price of petrol will decrease by R1.74 to R12.22 a litre in the commercial hub of Gauteng, while diesel will fall by R1.61 to R11.08 a litre.
Wandile Sihlobo, the chief economist at the Agricultural Business Chamber, said indications are that food prices will be contained. “While there are still unknowns about the definite impact of the Covid-19 pandemic on agriculture and food sector, we are still convinced that what will matter the most for the direction of food price inflation this year are developments in the grains, meat markets and fruit,” Sihlobo said.
The harvest is good news as food inflation is expected to remain contained