Getting to grips with business interruption cover during pandemic
A briefing by National Treasury (Treasury) on the financial impact of COVID19 on both the economy and national budget, published 30 April 2020, makes for depressing reading. Treasury indicated that the IMF estimate of a 5,8% contraction in domestic GDP for 2020 was optimistic given the “high levels of uncertainty [about the] duration and intensity of the pandemic, the subsequent macroeconomic fallout, and the associated stresses in financial and commodity markets”. They warned that tax revenue could decline by almost a third and predicted that between 690 000 and 1,7 million full-time equivalent jobs could be lost. Six weeks into lockdown, and with no sign of an end to the crisis, businesses are taking strain.