RON DERBY: Optimism dashed by bungling state
To get South Africa out of this slow-growth, high-inflation and confidence-sapping environment, government will have to at some point increase investment spending
To get South Africa out of this slow-growth, high-inflation and confidence-sapping environment, government will have to at some point increase investment spending. Presently, fiscal conditions don't provide any space because of rising debt to GDP ratios and rather muddy economic prospects. For most, it's a story that's well understood and has been hammered in. Our politicians on the other hand, well let's just say there's still some convincing to be done. But as weather conditions change, so does the economic climate. The data out of Europe, the long struggling economic story of the world, is looking much better. As the destination of a significant bulk of our exports, South Africa could see some fruits from this change. A healthier Europe, with it more than 400 million inhabitants, will buy more goods from the world's factory in China and its neighbours. These are nations without the raw materials that South Africa has in abundance, so once again we will benefit in the form of high...
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