For example, Adam Tooze published a widely read essay in Foreign Policy describing the coronavirus as the ‘biggest emerging market crisis ever’, which included the claim that, and I quote, “At the head of the list of vulnerable countries is South Africa”. This year’s financial market storm has hurt a wide range of countries.
The experiences of the worst hit, like Sri Lanka, have reminded us once again that macroeconomic stability is precious. It’s striking, however, that of the Fragile Five from 2013, only one country, Turkey, is in danger of an acute macroeconomic dislocation today. Yes, South Africa remains vulnerable to external shocks, and this keeps us awake at night.