Policy Uncertainty Index eases down to 71.8 points in Q3 – NWU's Business School
The university’s latest report on the Policy Uncertainty Index stated that slight economic growth and softer inflation were among the factors that helped to reduce the figure.
JOHANNESBURG - North West University’s (NWU) Business School said policy uncertainty eased from a record high of 76.2 index points down to 71.8 in quarter three of 2023.
Better than expected GDP (gross domestic product) growth and softer inflation were among the factors that helped to reduce the figure.
The business school released its latest report on Sunday, with the index set to give policymakers an indication of how to better manage the effects of policy uncertainty on the economy.
Despite a slight reprieve in the Policy Uncertainty Index, the figure remained well above the baseline of 50 index points.
NWU’s Business School said while several factors kept it elevated, some positive factors helped to keep it down.
Economic growth of 0.6% in the second quarter of 2023 was again good news, mainly due to the outcome of more moderate power cuts from Eskom in June when compared to April and May.
Though inflation is expected to remain sticky for some time, NWU said it was at least in the target range, for now.
The business school also said the successful BRICS (Brazil, Russia, India, China, and South Africa) Summit held in August also helped boost new trade and investment opportunities.
On the negative side, the economic outlook for the rest of 2023 appeared to be bleak, while consumer spending remained under pressure.