SA economy still contracting – but
13 May 2019 - by
April brought less load-shedding and improvement in the business index of the SA Chamber of Commerce and Industry (Sacci).
The purchasing manufacturer’s index (PMI) also rose slightly although not enough to top the all-important 50-point neutral mark.
But these developments on their own were not enough to stop the country’s economy from contracting, said senior emerging markets economist for Capital Economics, John Ashbourne.
And yet Ashbourne also feels that the economy is expected to strengthen.
With the international investment community taking courage from the recent national elections that Cyril Ramaphosa and the ANC will forge ahead with slashing government debt and sparking growth through tightening fiscal policy, economic improvement is expected to pick up momentum as the year winds on.
According to Ashbourne, SA’s GDP could grow by as much 1.5% by the end of the year.