South Africa is facing a coronavirus-driven jobs bloodbath, with the Business for SA (B4SA) formation forecasting that up to four million jobs could be lost this year.
Speaking during a media webcast on Wednesday, B4SA’s Martin Kingston said a minimum of one million jobs are set to be lost, but up to four million jobs are on the line as a result of the expected economic fallout from the Covid-19 pandemic.
The ominous forecast on job losses comes as B4SA has also predicted that South Africa’s recession will be significantly worse in 2020, with a GDP decline in the double digits.
The business body is now forecasting GDP shrinking by between 10.3% and 16.7% – significantly higher than forecast from the South African Reserve Bank, National Treasury, Moody’s and IMF of around 6%.
“Despite the government’s Covid-19 economic stimulus and relief package, we are expecting SA’s GDP in 2020 declining between around 10% and 17%… In addition, between a million and four million formal and informal sector jobs are at risk,” Kingston said.