On Tuesday the worrying headlines read “South African economy shrinks by 2.2% (worst figure in 9 years)”.
In a nutshell – the South African economy has been going nowhere since 2008.
Saville pays little heed to very short-term figures such as the shocking one released yesterday.
Nevertheless, even the far higher (than -2.2%) year-on-year figure of 0.8% places South Africa amongst the world’s slowest growing economies.
South Africa’s population is growing by, at least, 1.5% every year, comfortably exceeding economic growth.
In other words, we are getting poorer.
South Africans have lost a decade, says Saville, and we seem to be trapped in a low growth setting.
What is worse, the sectors of the economy that are in decline - mining and quarrying, manufacturing, agriculture as well as forestry and fishing – are very labour absorbing.
Saville points out that successful, competitive countries have economies that are “investment fed and export led”.
That does not describe the South African economy, according to Saville.
For more detail; listen to the interview in the audio below.
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