SA needs to pay attention to US election results, say economists

At a time that the COVID-19 pandemic has wrecked the global economy countries around the world are scrambling to rebuild their finances.

Supporters listen to US Democratic vice presidential nominee Kamala Harris as she speaks at a drive-in rally in Palm Beach State College in West Palm Beach, Florida, on 31 October 2020. Picture: AFP.

JOHANNESBURG - With all eyes on the United States presidential election outcome, economists said that South Africa needed to pay close attention as the results would have an impact here at home.

At a time that the COVID-19 pandemic has wrecked the global economy, countries around the world are scrambling to rebuild their finances.

And with America as a global superpower, the White House race will have a lot to do with the recovery process.

With the United States having one of the largest global economies, economists said that America's stability was pivotal for South Africa too.

Viv Govender from Rand Swiss Offshore said the outcome of the US elections would have an impact on South Africa’s plans to recover from the economic crisis.

“Political instability in the US means we are unlikely to see a large scale of government plans to try get the economy out of the crisis of COVID.”

Economist Mike Schussler said that the US was one of South Africa's biggest trading partners and the outcome of these elections would affect us too.

“We have the African Growth and Opportunity Free Trade Act, which allows our products to be tariff-free. If that were to be reversed in the next term, it could have a detrimental impact on many areas in South Africa.”

The US election outcome will ring in a new term of four years in the White House for the successful contender, who will have the power to make significant policy changes, as the world battles to recover from COVID-19.

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