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The current deficit has widened more than expected, and South Africa has narrowly missed slipping a recession. Paul Stewart, head: fund management at Grindrod Asset Management, has commented on the economic situation as follows:
In the current difficult economic climate, many industries are performing poorly as growth stagnates and consumers remain cash-strapped; yet there are measures that companies can deploy to perform counter-cyclical to the economy.
Just over a week ago, the rand was at R10.70/$ and R13.70/€ but they are now some 35c and 60c weaker respectively following the release of the disappointing current account data last week. But this week may prove to be even more calamitous.
Real economic transactions are declining at the fastest rate in four and a half years, according to the BankservAfrica Economic Transactions Index (BETI). The August BETI stood at 120.3 which is 3.2% lower than last year. This shows that we are, once again, on the verge of a declining economy.
If you had to hazard a guess, when do you reckon the COFI Bill will be signed into law?