As more results of surveys and economic data became available during the second quarter of 2020, it became evident that this was one of the worst quarters in decades, in some instances the worst on record. In the world of oil, the unthinkable happened when futures started trading below zero, with traders paying buyers to take oil off their hands. Economic contractions are widespread, with the UK wiping out 18 years of growth. In South Africa, the impact of the lockdown was felt equally hard as many business rescues, closures and retrenchments were announced. What else happened during the second quarter of 2020?
In response to the COVID-19 pandemic Finance Minister Mboweni tabled government’s special adjusted budget, that seeks to manage the impact of the pandemic on the economy. It’s a tough balancing act, as the recessionary environment continues.