LISTEN: Economist makes sense of junk status during lockdown
Economic activity around the world is at its lowest point
since the 2008 financial crises that brought about depressions in almost every
major and minor economy around the world.
Listen to the podcast or read below:
Once again, South Africa has been downgraded to junk status, so the Drive team thought it would be great to speak to Chief Economist at Old Mutual Investment Group, Johann Els, to help us make sense of exactly what this all means.
READ: Economist: Coronavirus could drag SA's economy even lower
Gordon was able to ask him a few questions that he was concerned about, especially during this trying time with the coronavirus peaking and with no cure in sight yet.
Questions asked:
- What does this downgrade mean to the average person sitting at home listening to us now?
- Was this downgrade to junk status a surprise?
- Did COVID-19 play any part in this downgrade?
- As a country that is already stretched financially due to lockdown and subsequent job losses, what does the future look like?
- I just can’t help feeling that Moody’s has kicked us when we were already down. Would it at all have been possible to freeze any ratings until we see some relief from the COVID-19 pandemic or does it not work like that?
Els had a lot to say about our junk status update and he answered every question the best way possible.
Listen to the podcast to hear what Els said about the junk status decision.