FTW Pick: Favourable global environment should pump up export volumes
12 Jun 2018 - by
South Africa remains under economic pressure despite an increase in business confidence following the changing of the guard.
While Cyril Ramaphosa’s appointment as president resulted in a massive spike in consumer confidence it did not spill over to business confidence to the same degree.
According to Nedbank senior economist Dennis Dykes, judging by the confidence figures, business remains fairly cautious. Describing the current economic cycle as mild, Dykes said hopes were high for some movement in the economy later this year. The latest statistics did not however reflect any underlying improvement in the first quarter of this year, he said.
“Most of the growth was seen at the end of 2017 on the back of the momentous changes in the country. Also, the agricultural and mining sectors bounced back well,” he said.
Speaking at the annual Road Freight Association (RFA) conference in the Western Cape recently, Dykes said the favourable global environment, reflected in buoyant global demand and higher commodity prices, would play a role in supporting exports during 2018.