Adviser’s report on economy laughable
IT WAS laughable to read the positive report of Trudi Makhaya, the president’s economic adviser, that major economies were very enthusiastic about South Africa during the G7 meeting.
This came during the week that we had so many negatives from a 2.2% contraction of GDP for the first quarter – the largest since 2009.
Agriculture dropped a whopping 24.2%, the worst since 2006.
Mining contracted by 9.9%. Our exports dropped 16.5% and our currency is on the ropes.
The business confidence received a further blow and dropped from 45 in the first quarter to 39, and then more analytical results of manufacturing dropped from 37 to 27, while new vehicle dealer confidence dropped from 52 to 35.
I won’t even mention all our other ills of corruption, unemployment, crime, strikes, etc.
But what do you expect with the VAT rate increase, the fuel price going up every month, which will affect inflation, the mining charter that devastated the mining industry and the land expropriation bill that will turn our economy on its head .
What worries me even more is that the world economy is showing signs of slowing down and, with the idiotic moves of “trade wars” that US President Donald Trump instigates, we will see worse economic growth in South Africa. Let’s forget about the 2% growth for the year. My thumb-suck prediction is that we will be very lucky to get 1%.
So much for “Ramaphoria” and the excitement we all had when he took over. JM BOUVIER Sandton