To think the economy will strengthen immeadiately after Ramaphosa is misleading
South Africa's Gross domestic product (GDP) shrunk by 2.2% in the first quarter of 2018, Stats SA announced on Tuesday.
This followed a quarter-on-quarter increase of 3.1% in the fourth quarter of 2017, with overall growth for 2018 at 1.7%.
But chief economist at Econometrix, Dr Azar Jammine, says the idea that the South African economy will be soaring immediately after President Cyril Ramaphosa takes over as president was misleading.
I think that Ramaphoria was misplaced. The whole notion that economic growth will soar ahead under Ramaphosa, which large global financial institutions were talking that way, is certainly misplaced, not that it had to do anything with Ramaphosa, due to the fact that people were overly optimistic.Dr Azar Jammine, chief economist at Econometrix
There are huge factional divides in the ANC that are preventing him put into practice what he would like to do. First and foremost against corruption, we have seen a huge push back against that.Dr Azar Jammine, Chief economist at Econometrix
But despite the latest figures being released by StatsSA, Dr Jammine says he's not convinced the numbers are accurate.
Not that the economy is doing well but I don't believe it is doing as bad as reflected in these figures.Dr Azar Jammine, Chief economist at Econometrix
To hear more of Azar Jammine's economic analysis. listen below:
This article first appeared on CapeTalk : To think the economy will strengthen immeadiately after Ramaphosa is misleading
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