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Business Confidence all-time low as Coronavirus upends Economy

South Africa’s business confidence dived all times economy low in April due to the imposition of lockdown in late march 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 is 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.

The key drivers of the month on month decline were because of 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 remains very crucial as of now to get the economy back to work – though in a safe working environment. It is said by the chamber in a note stating the proper functioning of the public sector is very important as it will 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.

On Wednesday, it is said that the South Africa country’s GDP may decline by between 10% and 16.7% this year, despite government, all efforts, also placing between 1 million to 4 million private as well as government sectors job at risk.

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