(4 minutes read)
· South African business confidence is now at the lowest ebb since 45 years due to the impact of the coronavirus pandemic, according to FirstRand Ltd.’s Rand Merchant Bank unit and Stellenbosch University’s Bureau for Economic Research, which conducted the study
· The quarterly business confidence index fell to 5 in the second quarter from 18 in the previous quarter.
· Way back in 1985, the index which was started in 1975, fell to 12, as a result of tightening sanctions against Africa by the
United Nations Security Council on account of Apartheid.
· Over 1800 business honchos were contacted for the survey conducted 13 May and 1 June
South African business confidence is now at the lowest ebb since 45 years due to the impact of the coronavirus pandemic, according to
FirstRand Ltd.’s Rand Merchant Bank unit and Stellenbosch University’s Bureau for Economic Research, which conducted the study. The study
also points out that companies, which responded to the survey are pessimistic now than three decades ago after the changeover the
governance to the majority population,
The quarterly business confidence index fell to 5 in the second quarter from 18 in the previous quarter. Way back in 1985, the index
which was started in 1975, fell to 12, as a result of tightening sanctions against Africa by the United Nations Security Council on
account of Apartheid. Over 1800 business honchos were contacted for the survey conducted 13 May and 1 June.
Lockdown was clamped on South Africa on 27th March, which brought all economic activities to a grinding halt. South Africa has been lifting the lockdown in a phased manner since 1st May. As reported by www.trendsnafrica.com, the South African economy slipped into
recession much before the spread of Covid-19. The pandemic only aggravated the steep economic slowdown.
According to the National Treasury, the gross domestic product could contract as much as 16.1% this year, if the pandemic prolongs. Recently, our portal also has reported the business confidence index compiled by the South African Chamber of Commerce and Industry, which dropped to an all-time low in April. The Chamber suspended the compilation of the confidence index since then due to total breakdown of the economic activities.
