Economy not so bad

2016-07-14 06:00

Despite the International Monetary Fund revising South Africa’s growth forecast to 0.1%, the situation is not so bad, suggested economist and senior industry analyst at FNB, Jason Muscat.

Muscat said that during a press briefing in Rosebank on Wednesday. FNB’s Bureau of Economic Research also recently released the consumer confidence index, which fell two points to -11. Private sector investment fell by 7%, which has implications for job creation, said Muscat.

He said consumers are taking strain, in an environment with growing unemployment. He also said consumers are tightening their budgets, and spending less, especially on durable goods.

Interest rates have peaked and inflation is trending down, which could be good news for consumers. “Inflation is expected to peak at 7.1% for the last quarter of the year.”

The current account deficit is 6% of GDP. Figures from FNB show that there are about 75 000 new businesses created each month.

In the first two years, however, 40% of new businesses are closed, he said.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24


5 scientific benefits of owning a cat

According to science, just the act of watching cats itself can bring about positive emotions – so it comes as no surprise then, that owning a cat has a number of benefits.



Why we love cats
8 great natural remedies for your pet
How to clean your dog’s eyes
This special pooch inspired his brother to learn to stand again
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.