These are the economic challenges facing SA business at present - Sakeliga
6 May 2019
Persisting difficult trading conditions, pressure on operating costs, weakening local and global growth trends, and poor investment fundamentals are some of the economic challenges facing businesses in South Africa and the broader economy at present. This is according to Sakeliga’s Economic Overview for Business Decision Makers, a quarterly publication produced in association with ETM Macro Advisors.
Sakeliga is especially concerned about the widening of the national budget deficit over Q1 2019. Annualised government spending is nearing 32% of GDP – historically high levels. Hefty expenditure and weak tax collection means that the National Treasury’s deficit forecasts are likely to be breached.
Gerhard van Onselen, senior analyst at Sakeliga says, “The business sector is clearly experiencing serious challenges. Our analysis outlines various drivers behind this troubling state of affairs. Our expectation is for disappointing GDP outcomes in the first quarter of 2019 – clearly, the recent boat of Eskom power cuts harmed productive endeavours of many businesses.”