We should be ‘livid and unforgiving’ about growth rate of 1%
University of Stellenbosch Business School prof Andre Roux says SA’s economy needs a complete restructuring as it relies too heavily on raw material for export
Uncertainty in SA’s leadership, a lack of accountability, corruption and concern about whether democratic institutions will retain their autonomy, are all factors creating a sense of mistrust among investors, says University of Stellenbosch Business School economics professor Andre Roux. Roux said this week South Africans should be asking how a country can allow growth of only 1%, and why they are not demanding growth of 3%. In 2016, SA’s GDP grew 0.4% and predictions are for 1.1% growth in 2017. "As a country we should not be despondent or depressed about the current economic status. We should be livid and unforgiving," said Roux. "We almost need a complete restructuring of the economy. We rely too heavily on raw material for export, the country is experiencing a savings deficit which leads to an inability to invest and without investment one cannot ensure economic growth." Roux said in addition, SA was suffering from severe labour constraints. Rating’s agency Moody’s warned recent...
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