An economist warns that South Africans should brace themselves for tougher economic times as the government waivers on the implementation of its National Development Plan. Cees Bruggemans of Bruggemans & Associates, Consulting Economists said in a note on Tuesday, that to suggest 0.9% growth ‘appears unrealistic, though perhaps still politically useful as we approach local elections’.”Recession is such an ugly word, yet it rules the roost practically everywhere now,” the economist said. The economist said that confidence is needed to support risk-taking, fixed investment and job creation in the country.
“Under these challenging circumstances to steadily raise interest rates and impose R18 billion of tax increases while constraining government spending – cutting the budget deficit from 4% last year to 3.2% of GDP this year – is to hammer yet more nails into the collective coffin.” So what could hold us up? Bruggemans said that confidence would fire private businesses to do more.
He called for sustainable breakout policies, as intended by the National Development Plan, but so far cynically abandoned ‘while hailed with wild abandon’. “If it is still to be a while, expect further sinking a la Brazil,” the economist said.