PODCAST | Business Day Spotlight: Policy uncertainty and a contracting GDP cause economic upset
In this edition of Business Day Spotlight, we explore the current state of the SA economy as the latest Stats SA data shows the country’s GDP contracted by 3.2% for the first quarter of 2019.
Our host Mudiwa Gavaza is joined on the line by Prof Adrian Saville, economics lecturer at Gibs Business School and CEO of Cannon Asset Managers to unpack some of the week’s top economic issues.
In addition to comments around the recently released GDP figures, the discussion looks at some of the reasons for the drop in economic performance and what some of the key drivers of growth for SA may be for the next 12 to 24 months.
With elections now out of the way, are we likely to see more inflows of capital into the economy from parties that were previously waiting to see how the democratic process would turn out? Saville says he certainly hopes so, but the policy environment needs to be right to attract investors.
As an investment professional, he also gives us some insight into the attitude and perception among investors at the moment.
The recent controversy over the ruling party’s comments about expanding the Reserve Bank’s mandate has also sparked much debate this week.
The discussion also looks at leadership in state-owned enterprises (SOEs) as CEOs at SAA and Eskom have resigned in the past few weeks. Is the state creating an enabling environment for the success of SOEs? Is it perhaps time to take some of these entities from public hands? Is it possible to replicate the performance of Telkom at other SOEs?
Listen in to hear thoughts around these and other questions: