GOOD NEWS! Better-than-expected GDP growth eases political uncertainty in South Africa

by MMC
0 comment

Closer collaboration between business leaders and government to address pressing challenges such as energy, logistics and crime has also contributed to this positive growth.

Bruce Whitfield speaks to Professor Raymond Parsons, economist at North West University Business School.


Finally, something to be excited about from an economic point of view.

Better-than-expected economic growth of 0.6% in the second quarter helped ease political uncertainty in South Africa, as inflation returned to the Reserve Bank’s target range of 3% to 6%.

The Political Uncertainty Index (PUI) compiled by the North-West University Business School fell to 71.8 in the third quarter (July-September) from 76.2 in the second quarter.

While several contrary factors have kept the PUI high, Professor Raymond Parsons, an economist at NWU Business School, says there has been enough positivity to push the PUI down slightly over the past three months.

Parsons believes another source of potentially positive news lies in business leaders working more closely with government to address pressing challenges in the crucial areas of energy, logistics and crime.

The success of the BRICS summit in August also had useful commercial spin-offs.

He cautions, however, that there is still a high degree of volatility and uncertainty in South Africa’s current growth dynamics, particularly as higher levels of load shedding have resumed for most of September and that the finances of many households remain under pressure.

@etiamos/123rf.com
@etiamos/123rf.com

Certainly, there are elements of resilience in the South African economy, but there are also elements of fragility.

Professor Raymond Parsons, economist at NWU Business School

We must handle the situation very carefully, because when we talk about political uncertainty, it is not inevitable. We can reverse it.

Professor Raymond Parsons, economist at NWU Business School

We can fix it, but that means you must manage the factors within your control and implement the policies and projects that will make a difference and reduce uncertainty.

Professor Raymond Parsons, economist at NWU Business School

Listen to the audio to learn more.


More business

You may also like

Leave a Comment

The news website dedicated to showcasing Africa news is a valuable platform that offers a diverse and comprehensive look into the continent’s latest developments. Covering everything from politics and economics to culture and wildlife conservation

u00a92022 All Right Reserved. Designed and Developed by PenciDesign