South African Economists Blame Spending Cuts for Weak Q2 Confidence as GDP Risks 0.5% Reversal
Updated
Updated · SABC News · Sep 8
South African Economists Blame Spending Cuts for Weak Q2 Confidence as GDP Risks 0.5% Reversal
3 articles · Updated · SABC News · Sep 8
Summary
South African economists warned business confidence will stay weak unless the government reverses austerity before Statistics South Africa releases second-quarter GDP data.
Cuts to education, healthcare and infrastructure are deterring investment, they said, because businesses read lower public spending as a lack of commitment to transport, energy and basic services.
Dr Azar Jammine said growth prospects are slim, reinforcing expectations that the April-June figures will show stagnation or contraction.
That would mark a setback from the 0.5% first-quarter expansion, after higher fuel costs and weak demand already hit manufacturing, mining and electricity output.