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Impact of virus will hurt economy for months to come

Global uncertainty will also make things more difficult for South Africa, which is urgently in need of higher growth. A global recession would only compound the country’s challenges. Image: iStock

The economic impact of the coronavirus will stay with us for much longer than the virus itself, with one expert predicting a recession unlike any we have ever seen.

The full impact of the coronavirus pandemic’s on earnings, cash flow and employment is expected to last far longer than a three-week lockdown, and South African retail and consumer-focused businesses – especially in tourism and hospitality – are feeling the pinch, according to an academic. With the 21-day nationwide lockdown in place, University of Stellenbosch business school guest lecturer, Jason Hamilton, said the full effects would “ripple through all sectors and industries – at least until the end of this year, in an economic cycle like no other we have ever seen”. The pandemic, said Hamilton, would see South Africa’s...

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