Summary:
- The full economic impact of Covid-19 is still unknown.
- The South African Reserve Bank applied various tools to stabilise the country’s weakened fiscal position.
- The use of macroeconomic policy by the South African Reserve Bank has eased financial conditions and improved the resilience of businesses and households.
- Prudent macroeconomic policies and structural reforms will need to be applied in order to lower costs, increase investment opportunities, and drive potential growth and job creation.
- This policy brief offers lessons in developing macroeconomic policy in South Africa.
