All eyes on GNU to ease uncertainty as policy uncertainty index edges up in Q2
The policy uncertainty index is now a hot 68.3, up from 65.8 in the previous quarter.
The DA and ANC entered into an arrangement in the Government of National Unity. Picture: GCIS
JOHANNESBURG - All eyes are on the Government of National Unity (GNU) to ease uncertainty as the policy uncertainty index edges up again in the second quarter.
The North West University Business School released the latest reading on Wednesday.
The policy uncertainty index is now a hot 68.3, up from 65.8 in the previous quarter.
The highest the policy uncertainty index has ever been was the 76.2 seen about a year ago.
While the figure has dropped back below 70 index points now, it still remains high.
The North West University Business School says it believes a lower policy uncertainty index next quarter and later in the year could stem from the combination of four encouraging developments.
The first of these is the initial positive response from business and the markets to the formation of the Government of National Unity (GNU).
The second is the roadmap for the GNU outlined by President Cyril Ramaphosa after he was sworn in last week.
A strong commitment to implementing both existing and new growth-friendly economic reforms is also expected to boost confidence.
The institution said that expediting these reforms would be the GNU's big test.
It said that a successful GNU needed to create a policy environment that raised the level of overall fixed investment needed to create jobs.