All eyes are focused on the United States presidential election outcome. Economists said that South Africa needed to pay close attention as the votes are counted as the results would have an impact here at home. The COVID-19 pandemic has wrecked the global economy, countries around the world are scrambling to rebuild their finances and fighting unemployment. The United States is a global superpower and therefore, the race for the White House will have a lot to do with the recovery process.
The United States have one of the largest global economies and economists said that America’s stability was pivotal for South Africa too. Viv Govender from Rand Swiss Offshore said the outcome of the US elections would have an impact on South Africa’s plans to recover from the economic crisis that the country is currently faced with. “Political instability in the US means we are unlikely to see a large scale of government plans to try get the economy out of the crisis of COVID.”
Chief Economist Mike Schussler said the US was one of South Africa’s biggest trading partners and the outcome of these elections would affect us too. “We have the African Growth and Opportunity Free Trade Act, which allows our products to be tariff-free. If that were to be reversed in the next term, it could have a detrimental impact on many areas in South Africa.”
The United States election outcome will ring in a new term of four years in the White House for the successful contender, who will have the power to make significant policy changes, as the world battles to recover from COVID-19.