Will S.Africa trip into a recession?
Hugo Pienaar, Chief Economist at Bureau for Economic Research joins CNBC Africa’s Zanele Morisson for more.
Mon, 05 Jun 2023 17:36:37 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- South Africa's economy has experienced a stop-start recovery due to domestic shocks like riots and floods, hampering GDP growth.
- Government expenditure on infrastructure and capital projects is crucial for driving economic growth and supporting the recovery.
- Despite the challenges, there are signs of improvement in key sectors such as exports and the financial industry, but the country still has a long way to go to fully recover from pre-COVID levels.
South Africa's economy continues to face challenges as the country navigates a slow recovery from the 2020 crash. Hugo Pienaar, Chief Economist at the Bureau for Economic Research, highlighted the stop-start nature of the recovery, citing domestic shocks such as the July 2021 riots in KwaZulu-Natal and the floods in KZN as factors that have impacted GDP growth. Despite these setbacks, Pienaar remains cautiously optimistic about the outlook for the economy. He pointed out that while load shedding and other issues have hampered growth, there are signs of improvement in key sectors such as exports and the financial industry. However, the country still has a long way to go to fully recover from the pre-COVID levels. Pienaar emphasized the importance of government expenditure on infrastructure and capital projects to drive growth and help boost the economy's recovery. Despite the challenges ahead, Pienaar believes that with the right policies and investments, South Africa can avoid a technical recession and emerge stronger in the long run.
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