South Africa's Central Bank Sees Up to -4% GDP Over Coronavirus Fallout

South Africa’s central bank slashed its growth forecasts on Monday, predicting the economy could shrink by as much as 4% in 2020 due to the novel coronavirus, which has forced a national lockdown and triggered two credit ratings downgrades, Reuters reported. The bank also said growth was unlikely to exceed 1% in 2021, job losses this year could reach 370,000, and business insolvencies would likely increase by 1,600. While painting a grim outlook, it dampened expectations of the kind of radical stimulus measures Western countries have adopted to tackle it. “South Africa’s pre-existing macroeconomic vulnerabilities make it unrealistic to implement stimulus on the scale seen in the strongest advanced economies,” the South African Reserve Bank (SARB) said in its bi-annual Monetary Policy Review. Read more