Business confidence all over the world was in trauma due to the rising cases of Covid-19 in the year 2020. Mostly all major exchanges hit an all-time low due to the upside-down of an economy.
Out of all the South Africa’s business confidence dived all times economy low in April due to the imposition of lockdown in late march 2020 to slow down the spread of the COVID-19. The index slumped to 77.8 in April from 89.9 in March compiled by SA chambers of Commerce and Industry.
This was the second-sharpest month-on-month decline and lowest level hit ever for the SACCI BCI since inception in 1985,” the group said in a report.
Key Factors Affected Market
The key drivers of the month-on-month decline were a huge drop in merchandise exports, resulting in a poor exchange rate than the major trading currencies, and a decrease in demand for new vehicle sales.
It remained very crucial to get the economy back to work at that time – though in a safe working environment. It was said by the chamber in a note stating the proper functioning of the public sector is very important as it would result in finding the resources to finance the additional expenditure flow from health hazards and service additional government debt for the proper functioning of the economy.
Possible GDP Contraction
On Wednesday, it was said that the South Africa country’s GDP may decline by between 10% and 16.7% this year. Despite all of the efforts placed by the government – 1 million to 4 million private as well as government sectors jobs were at risk at that time.