Business Day Spotlight

In this edition of the Business Day Spotlight, we discuss the economics news of the week as SA begins its phased approach to re-opening the economy. Our host Mudiwa Gavaza is joined by Sanisha Packirisamy, an economist at Momentum Investments to unpack the issues. The conversation begins with Packirisamy explaining the recent S&P Global Ratings decision to downgrade SA further into junk status. S&P cited the effect of the Covid-19 pandemic on the economy and heightened concerns about the long-term sustainability of the country's debt. The discussion also touches on S&P’s recent downgrade of SA, the challenges and opportunities likely to be faced in re-opening the economy, considerations at the local, provincial and national level; and if SA is likely to see more stimulus from government, even as more people go back to work.