Politics essential in restoring confidence in SA’s economic prospects

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Politics essential in restoring confidence in SA’s economic prospects

Driving confidence is the cheapest form of stimulus – if people are more confident, consumers will consume and businesses will invest. Image: iStock

The corruption and mismanagement that characterised the Zuma presidency sucked confidence out of the economy, and South Africa’s GDP growth has stagnated.

When the government of national unity took office in 1994, the South African economy was in a precarious state. The country’s debt to GDP ratio was close to 50%, economic growth over the past five years had averaged just 0.2%, and inflation had been above 10% for most of the previous 15 years. There was broad concern about South Africa’s economic prospects. Confidence was low. However, over the following five years, the country staged a remarkable recovery. Government debt was controlled, inflation was managed downwards and economic growth averaged 2.5%. This was a pertinent example of just how much impact...


 


 


 

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