‘South Africans are getting poorer and poorer because of politics’

So blooming depressing! We’re on the cusp of recession all over again!

Bruce Whitfield, The Money Show
pixabay.com (2018)

The South African economy shrank by a surprising 0.6% in the third quarter of 2019.

Agriculture contracted by 3.6%, mining by more than 6% while manufacturing was down almost 4%.

The only silver lining is fixed investment by private businesses, which grew by 7.4%, following on growth of 10.5% in the second quarter.

The Money Show’s Bruce Whitfield interviewed Isaah Mhlanga, Chief Economist at Alexander Forbes Investments.

It would require about 4.1% growth in the fourth quarter to reach 0.5% [growth for the year], which is very unlikely… For the next 18 to 24 months, growth is going to remain sub-0.5%... we’re likely to see more retrenchments…

Isaah Mhlanga, Chief Economist - Alexander Forbes Investments

The hard decisions required to build confidence aren’t being made fast enough… It’s absolutely all about politics… SAA is a classic example… Politicians… perhaps they’re deaf to the situation the economy is in.

Isaah Mhlanga, Chief Economist - Alexander Forbes Investments

Listen to the interview in the audio below.

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