As the operating environment becomes more challenging, business confidence in SA is unlikely to improve in the short term. Factor in the fact that the country’s share of the global economy is declining year on year, and it’s a pretty bleak outlook. Discussing the relationship between confidence and economic performance, Stanlib chief economist Kevin Lings said SA is in the precarious position of experiencing weaker economic growth at a time when the global economy is strengthening. Lings was speaking at the recent Business Day/Financial Mail Investment Summit, this year sponsored by Old Mutual Wealth. “SA currently has a 0.4% share of the global economy but this share is growing smaller each year,” Lings said, adding that without growing the manufacturing and export sector, the country has little hope of improving its economic outlook. Lings attributed this decline to a loss of business, investor and consumer confidence in the country. “The single biggest initiator of economic confi...
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