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NATIONAL TREASURY

NATIONAL TREASURY 1 economic MEASURES FOR COVID-19 2 Introduction The COVID-19 pandemic is simultaneously a health crisis and a global economic crisis. Led by the President, government has acted decisively to prioritise the health and lives of all South Africans. Yet the economy, which was already weak before the emergence of the pandemic, has been hit by interlocking shocks to supply and demand. The immediate priority is to use the joint levers of fiscal and monetary policy to support economic activity and alleviate hardship. Government has adopted a risk-adjusted approach to reopening the economy, with the initial easing of lockdown measures on 1 May.

ECONOMIC MEASURES FOR COVID-19 4 Figure 3: Summary of the three-phase economic response Phase 1: Preserve The focus of this phase is on immediate interventions to ensure health preparedness, as outlined by health authorities. Restrictions on economic activity will be gradually phased out to support businesses and workers.

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