The near-term policy objective will be to contain the COVID-19 pandemic, while attempting to restart the economy after the virus-related lockdown. South Africa's economic growth continues to remain well below most emerging market peers on a per capita basis. Attempting to boost inclusive growth will be a priority for the medium-to-long term, but is unlikely to deliver rapid growth. South Africa's fiscal position remains weak, and a COVID-related shrinking economy, lower government revenues, and a large fiscal package have further exacerbated existing fiscal problems. South Africa will have to grapple with a large debt burden and sizable contingent liabilities, with the latter largely tied to energy utility Eskom. We consider South Africa's monetary flexibility, the freely floating exchange rate, and
