Ad­viser’s re­port on econ­omy laugh­able

The Mercury - - OPINION -

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

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