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South African Economy is in danger: The professionals testify!

by Bongekile Nkomo

As the war between the finance minister Pravin Gordhan and the hawks continues economist have issued an official release of the negative implications on the economy caused by the ongoing tensions. The decline in the economy follows after Gordhan refuse to present himself to the hawks in order to make a warning statement.

‘Uncertainty is harmful to any economy and when uncertainty is caused by political plots against the minister of finance, it is doubly harmful,’ Said the Pan African Investment and Research chief executive chief, Iraj Abedian.

In addition to this declining a declining gross and collapsing of investor and business have been cited.  Lumkile Mondi, a senior lecturer at the school of Economics and Business science at the University of Witwatersrand said that there was a growing lack of confidence by businesses and consumers on the performance of the economy.

In fact, investment plans are being shelved until after 2019 due to the lack of a credible centre within the ANC that has a clear vision as embodied in the National Development Plan, the SA Reserve Bank’s forecasted economic growth of 1.1 percent next year assumed political stability.Such growth would be on the back of rising prices of commodities such as platinum, manganese and gold and not by manufacturing or services, which have carried us throughout the tough period we are in.

 

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