Answer:
Tropical Cyclone Eloise had a severe impact on the economy of South Africa, resulting in the loss of infrastructure, disruption to critical sectors, and significant revenue losses
Step-by-step explanation:
- A cyclone destroys property which then requires taking money out of savings (sometimes the insurance companies' savings) and putting the money to work.
- This change in money’s use creates a stimulation to the economy.
- The destruction of property takes productive assets out of action causing a loss of production which slows the economy.
- The economy is initially damaged from the loss of productive assets but is improved when construction proceeds.
- The combined effect can be positive but is much less than if the productive assets were not damaged at all. This means that the economic impact of Eloise or any cyclone is detrimental but can create work which is a partial offset.