Strikes Hit SA Economy Hard

Strikes Hit SA Economy Hard

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South Africa’s economy is in decline following the strike in the motor industry, according to the BankservAfrica Economic Transaction Index (Beti).

Economist Mike Schüssler said, “The overall trend in the Beti over the last few months seems to indicate that economic growth is slowing rather than increasing.”

“This is disappointing and could indicate that the 3% growth expected for next year may be a pipe dream if no improvement occurs in the last two months of the year.”

He said hope rested on the fact that the year-on-year figures remained positive at 2% – a much lower figure than before.

The monthly and quarterly Beti showed an actual decline of 1.3% and 1.5% respectively.

After the strike season last year, the Beti showed a decline for a further month or so as economic transactions lagged after major industrial action.

Schüssler said the current slowdown pattern seemed to be a repeat of this.

 

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The overall picture was one of an economy struggling to get going.

“South Africa cannot afford to grow at two percent if it wants to deliver sustainable job growth and meet its own objectives as set out in the National Development Plan or the New Growth Path,” he said.

 

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