South Africa's strict coronavirus lockdown credited with saving lives, but economy is suffering

 

South Africa’s coronavirus lock down measures, some of the strictest in the world, have earned praise from groups including the World Health Organization [WHO] for saving lives – but at the same time, recent data could prove some analysts’ claims that its economy has been largely “destroyed.”

The country’s statistician-general announced this week the gross domestic product [GDP] has slumped 51% in the second quarter of this year. Investment specialist Andrew Lapping quoted South Africa’s National Treasury as predicting up to 7 million could lose their jobs, out of a formal workforce of just over 10 million.

So many have lost their jobs that Johannesburg’s normally clogged highways now see mostly free-flowing traffic, even during rush hour.

A salesman for one of the largest car auction showrooms, now full to the brim with vehicles for sale, told Fox News they have stopped taking luxury vehicles from desperate owners “because few have got the money to buy these cars, even cheaply.”

Government officials say thanks to the continuing lockdown, COVID-19 infections are past their peak. In the 24 hours leading up to Thursday night, the latest figures available showed just 97 people have died, and 2,007 new cases have emerged. The recovery rate stands at 88.9%. But, despite the restrictions, the number of reported cases stood at 644,438.

“One has to wonder whether the stringency of the lockdown was worth the effort, significant sections of economic activity have been permanently damaged,” Dr. Azar Jammine, the director and chief economist with Econometrix, told Fox News.

Jammine added: “It is doubtful whether the country can restore growth even to levels prevailing prior to the COVID-19 crisis within the next few years.”

He concluded that the economy was “already in dire straits” even before the virus hit South Africa’s shores because of corruption and poor government.

Fox News