Uncertainty is up in 2017 due to the Cabinet reshuffle and its consequences
The policy uncertainty index shows economic activity is weaker this year and ‘radical economic transformation’ is a source of uncertainty for investor confidence
Policy uncertainty went up in the first quarter of 2017 based on the Cabinet reshuffle and the economic consequences. The policy uncertainty index (PUI) released on Thursday by the North West University (NWU) School of Business and Governance, shows an average score of 51.0, up from 38.8 in the fourth quarter of 2016, putting the index in negative territory. An increase to above 50 reflects heightened policy uncertainty, while a score below 50 indicates reduced uncertainty. The index shows that the media talked more about policy uncertainty in SA, while economists unanimously agreed that policy uncertainty had risen. The index draws on sentiment from both local and international investors and while the global economy is recovering, SA has "performed far less well". According to the index, "Economic activity in most sectors proved much weaker in the earlier part of 2017 than many analysts expected." Prof Raymond Parsons said: "The PIU confirms that SA is facing a period of uncertaint...
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