South Africa’s business confidence (BCI) is now at an all time low. The index, compiled by the South African Chamber of Commerce and Industry slumped to 77.8 in April from 89.9 in March, which is incidentally the lowest since its inception in 1985. The decline is the second-sharpest month-on-month decline.
Business for South Africa, another think tank said that the country’s GDP may contract by between 10% and 16.7% this year despite government stimulus efforts. This will place between 1 million and 4 million formal and informal sector jobs at risk.
However, as a silver lining, foreign exchange reserves in South Africa increased to US$ 53 billion in April 2020 from the previous month’s seven-month low of US$ 52.43 billion.
South Africa’s business confidence (BCI) is now at an all time low. The index, compiled by the South African Chamber of Commerce and Industry slumped to 77.8 in April from 89.9 in March, which is incidentally the lowest since its inception in 1985. The decline is the second-sharpest month-on-month decline.
The factors that pulled down the month-on month index were a sharp drop in merchandise exports, weak rand, and sharp fall in the sale of automobiles.
Business for South Africa, another think tank said that the country’s GDP may contract by between 10% and 16.7% this year despite government stimulus efforts. This will place between 1 million and 4 million formal and informal sector jobs at risk.
However, as a silver lining, foreign exchange reserves in South Africa increased to US$ 53 billion in April 2020 from the previous month’s seven-month low of US$ 52.43 billion. The latest figure is on account of US dollar gold price and valuation adjustments due to foreign
currency and asset price movements. However, the foreign exchange outgo on account of the government sector borrowings, primarily to service the loans, partially offset the gains in the reserves.
