South Africa Announces 33 Trillion Won Economic Stimulus Package... "Equivalent to 10% of GDP"

[Asia Economy Reporter Jeong Hyunjin] South Africa has announced a massive economic stimulus package worth 33 trillion won to prevent economic damage caused by the novel coronavirus infection (COVID-19). This amount corresponds to 10% of South Africa's gross domestic product (GDP).

According to major foreign media on the 21st (local time), South African President Cyril Ramaphosa said in a nationally televised address that evening, "We will provide a package worth 50 billion rand (approximately 33 trillion won), equivalent to 10% of GDP, for large-scale social relief and economic support." He emphasized that "an economic response matching the scale of the disruption caused by the pandemic is necessary."

President Ramaphosa also stated that the lockdown, which will last for five weeks until the end of this month, will be gradually eased, and that inclusive economic growth will be promoted through significant infrastructure development and rapid implementation of economic reforms to aid economic recovery. He added that South Africa's Treasury is in discussions regarding loan requests made to international organizations including the World Bank (WB) and the International Monetary Fund (IMF).

The South African central bank forecasts that GDP will decline by more than 6% this year. Credit rating agency Moody's downgraded South Africa's sovereign credit rating from 'Baa3' to 'Ba1', which is junk bond level, at the end of last month, maintaining a 'negative' credit outlook. South Africa's unemployment rate is already approaching 30%.

President Ramaphosa mentioned that government food distribution has not been adequately carried out since the outbreak of COVID-19 and said that a solution for food support will be prepared within a few days through the South African Social Security Agency (SASSA).

According to data from Johns Hopkins University in the United States, the number of confirmed COVID-19 cases in South Africa was counted at 3,465 as of this day.

This content was produced with the assistance of AI translation services.