Moody’s Ratings has cut SA’s projected growth rate to 1.5% from 1.7% previously. The IMF suggests a figure of 1%.
SA’s average growth rate over the last 10 years, most of it under the leadership of President Cyril Ramaphosa, has been slightly below 1%.
Lately, Ramaphosa and his lieutenants seem obsessed with transformation in the workplace. By its very nature such transformation will initially bring with it a cost factor. Then throw in the economic stress resulting from Donald Trump’s aggressive actions against us and I would suggest our growth rate will drop one or two decimal points below 1%.
Our embarrassing budget attempts to date require a realistic practical growth number this time.
David Wolpert
Sydney
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