Macroeconomic Policy Development: Lessons Learnt from South Africa during COVID-19

Image: Getty
Image: Getty

The depth and length of the economic downturn produced by COVID-19 is still unknown. COVID-19 hit South Africa on the back of a technical recession combined with growing public sector debt and a downgrade to junk status in March 2020.


  • 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.

26 May 2021