Wors­en­ing econ­omy raises fur­ther red flags for SA busi­ness BY LEON KOK

Finweek English Edition - - FUND FOCUS -

South Africa has bro­ken into a rel­a­tively vi­cious cy­cle of low con­fi­dence in re­cent years with gov­ern­ment hav­ing be­come less in­vestor friendly and rat­ings agen­cies con­stantly see­ing fit to down­grade credit rat­ings.

Eco­nomic growth fore­casts for the year 2015/16 are cur­rently be­ing re­vised down­wards.

Leon Kok spoke to Old Mu­tual In­vest­ment Group chief econ­o­mist Rian le Roux about th­ese and other is­sues. De­spite c o n c e r n s o v e r S A’ s com­pet­i­tive­ness, non-gold ex­port vol­umes have hit new highs, seem­ingly driven es­pe­cially by iron ore, man­ganese and cars; cap­i­tal spend­ing in the econ­omy has re­mained at his­tor­i­cally high lev­els and house­hold debt delever­ag­ing ap­pears to be slow­ing.

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