Business confidence plunges to an all time low


It is all up to consumers to opt to view the current economic situation in the country as the case of a glass being either half full or half empty. But, increasingly, analyses from different institutions are heightening fears that the country could be inching towards the precipice of a recession.

The South African Chamber of Commerce and Industry (SACCI) is a recent entity to express low confidence in the state of the economy. Results from its survey paint a picture of gloom, revealing that businesses are gravely worried about weak growth.

Alarmingly, the plunge in business confidence is said to be the worst since April 2000 – illustrating a 3.7 points decline to 88.9 in May 2014.

In a statement mailed to Transform SA, SACCI identified some of the country’s challenges as low economic growth and persistent balance of payment gap. It believed a sustainable solution lied in sound and predictable policy.

The organisation acknowledged that it was under no illusions that the matter could be addressed as fast as any business would wish. It said: “What is of greater concern are the challenges that are more complex in determining policy responses, including concerns about property rights, unemployment, income disparities and rising levels of labour protest action.”

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