Only solution is for SA to become attractive to local and foreign investment
SA could fall into a full recession in 2018, with the economy shrinking 3% and continuing to shrink at a slower pace for the next two years
SA is between a rock and a hard place. It has been there before but this one has all the appearances of a looming iceberg. The economy is in the doldrums, GDP growth has been negative this last quarter and forecasts show that it is unlikely to exceed 1% in 2017. Confidence is low, business is not investing, the current account remains negative and unemployment has risen to more than 27%. Foreign direct investment fell $4bn to $1.8bn in 2015. It grew to $2.4bn in 2016 but that is cold comfort as it remains almost 70% below the 2013 inflow of $8.3bn. South African companies are investing more abroad and holding cash there. These facts indicate that there is a lack of confidence in the South African economy by both domestic and foreign investors. This is hardly surprising. While the country occupied the 11th position out of the top 25 rated countries in the AT Kearney FDI confidence index in 2012, it dropped to the 13th position in 2014. It was not included in the 2015 ranking at all b...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.