Economy report paints bleak pic

It’s no secret the SA economy is limping along and the forecast is not looking promising. Limping is probably too kind a word to describe the state of our economy. Covid has cut a swathe through our economy, unemployment is at a record high and the man in the street is struggling to make ends meet. The forecast of real GDP growth is set to remain below 2% next year and in 2024, which will clearly not address the country’s growing socioeconomic needs.

According to this year’s socioeconomic survey of the Centre for Risk Analysis (CRA), released this week, if government does not address a number of failures, the slide will continue.

It identified key policy risks, including: government’s continued doubling down on damaging regulations in policies, such as the Employment Equity Bill and the draft Companies Amendment Bill; poor business sentiment leading to low levels of investment and growth which, in turn, has led to record-high unemployment rates; a further constraint on household budgets, while the middle class is struggling to meet debt obligations; and lack of jobs having increased a xenophobic sentiment, with protests becoming more violent.

All these don’t make for a pretty picture.

CRA senior economic analyst Bheki Mahlobo said: “South Africa lacks a skilled workforce to be absorbed in specialised employment. These sectors require highly skilled individuals but our education system does not properly equip individuals with such skills.”

Due to unemployment, far too many South Africans rely on social grants. It is an untenable situation, and something has to give.

We need a quick U-turn, but we wonder if anyone in government is listening...