ECONOMY
GAVIN KEETON: Restore confidence now, then work to lift productivity
Investors are eager to respond positively to better policies — but swift action is needed by government
The World Bank forecasts that the economy will grow 1.1% in 2018. This is slightly faster than 0.8% in 2017 but it is still much slower than SA’s population is increasing and is totally inadequate to tackle unemployment, poverty and inequality. Nor can it generate increased tax revenue to fund critical government services. The World Bank forecasts that Africa will grow 3.3% in 2018, while collective global growth of 3.1% is expected. There is only one way to escape SA’s position of global and continental laggard. SA must invest much more to expand the stock of factories and machines and set them to work providing infrastructure to power higher levels of economic activity. In the process, many more jobs must be created for people whose productivity has been enhanced through meaningful education and improved skills. Such changes will take years. In the short term, improved growth depends on informed policy choices. The government needs to focus on setting the foundations for higher gr...
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