Economist: Ideological confusion of Govt adds to ailing economy
The Business Confidence Index shows a sharp drop in business confidence to levels not seen since 2009.
CAPE TOWN - The Bureau for Economic Research says there's no easy option left for the South African government to spur economic growth.
The institute released its second quarter Business Confidence Index early on Wednesday.
The data shows a sharp drop in business confidence to levels not seen since 2009.
The index is generally a leading indicator and levels this low suggest economic growth will remain subdued in the coming months.
Economist Dawie Roodt says confidence is something that feeds on itself.
“And the moment it goes down; it tends to go down even further. And I think the first step that we need to take is just to ask the question what we are ideologically standing for and clearly we have a government that’s ideologically completely confused. And because we have a government that’s ideologically confused, we also have conflicting policies.”
Economist Azar Jammine says there is only one way to turn the situation around.
“The only way is to have a change of leadership in the country, the only way. So long as Zuma remains president, there will be the feeding of all his proxy that state capture will be the order of the day. And even the finance minister doesn’t enjoy much credibility.”
(Edited by Zinhle Nkosi)