Kganyago expects economy to return to pre-COVID levels 'somewhere in 2023'
South African Reserve Bank Governor Lesetja Kganyago also said that the effects of the looting would be felt for some time.
JOHANNESBURG - With the country counting the cost of the looting and the lockdown affecting growth, there are concerns that it will take some time for the economy to recover.
South African Reserve Bank Governor Lesetja Kganyago announced on Thursday that the repo rate would remain unchanged.
He also said that the effects of the looting would be felt for some time.
Kganyago said that the country's economy would improve in the long term.
"In terms of GDP returning to pre-COVID levels, our baseline is that it is still going to be somewhere in 2023," the central bank governor said.
Professor at the GIBS Business School, Adrian Saville, said that growth was expected but questions such as the basic income grant first needed to be answered.
"That, in many ways, is absolutely critical given the extent and nature of poverty and inequality in the country but does it come at the cost and price of investment and infrastructure and if it does, we might be giving with one hand and taking away with the other."
However, Kganyago, said that the bank was confident of continued growth despite the various problems facing the country as long as there was not a repeat of the past few weeks.