SA’s economic whiplash
In a stunning reversal of fortune, SA has whipsawed over the past two months from anticipating a continued strong recovery and better fiscal outlook to counting the devastating cost of the recent unrest
The recent unrest has wiped out SA’s economic exuberance, with some economists forecasting that the economy probably contracted in the third quarter. And given the negative fiscal and investment implications, credit-ratings downgrades are also likely to be back on the cards.
At the July monetary policy committee meeting, Reserve Bank governor Lesetja Kganyago warned that the unrest had not only "fully negated" the better growth results from the first quarter, but could also have lasting effects on investor confidence and job creation...