CAPE TOWN - The outlook for economic growth seems bleak amid the lowest business confidence levels in eight years.
The Bureau for Economic Research (BER) released its quarterly business confidence index on Wednesday.
The second quarter data shows the Index dropped 11 index points.
Economist Azar Jammine says the slumping business confidence gives a good indication of things to come for the South African economy.
“And that, in turn, augurs ill for any hopes of an economic improvement and suggests that the recession is likely to be sustained for quite a while.”
Economist Dawie Roodt says there is little room for monetary policy to play a role in spurring growth.
“The South African Reserve Bank can cut interest rates in an attempt to support the economy but doesn’t mean that people will start borrowing and banks will start lending, I doubt that.”
The BER says that it is going to take an end to domestic political turmoil and the emergence of confidence-inspiring political leadership to turn the tide.
(Edited by Zamangwane Shange)