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When will we see good growth in SA again? Kanaan Asset Managers, July 2014 |
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Kanaan Asset
Managers
July
2014
When will we see
good growth in SA again?
It will not help
us to wait on the global economy.
Higher global
economic growth and demand would benefit local exports although South Africa
might have to wait longer for this. IMF MD Christine Lagarde warned recently
that global growth could underperform for a while longer.
Last month the
World Bank revised its economic growth to 2% from 2.7% over concerns similar to
those of the IMF, including tight monetary policy.
We should not
expect above average growth for South Africa, except if the government start to
do certain things, which they can do and what they are supposed to
do:
1.
South
Africa needs higher and inclusive private sector-led growth to foster job
creation and reduce income inequality.
2.
Reforms
proposed in South Africa’s National Development Plan and critical reforms to
product and labour markets, would help the private sector contribute to economic
activity.
3.
Promotion
and protection of Investment Bill and the Expropriation Bill should be
cancelled, to instil confidence in the future of property
rights.
4.
Prolonged
and violent strikes should be “outlawed” to protect economic growth and those
who wished to work.
Kanaan Asset
Managers
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