Negative sentiment and virtual disruptions have been plaguing South Africa\u2019s economy for the last decade.<\/p>\n
This is according to Efficient Group economist, Francois Stofberg, who said that short-term volatility has translated into negative long-term fundamental changes in the country.<\/p>\n
“Nowhere is this more evident than what\u2019s been happening to South Africa\u2019s currency lately,” he said.<\/p>\n
“Fundamentally our rand should be closer to R12.50 levels<\/strong>. But reoccurring short-term disruptions, mostly caused by sentimental drivers such as poor governance, a lack of political leadership and efficiency, as well as weak policies, have eroded the long-term (fundamental) strength of our economy and currency,” he said.<\/p>\n Stofberg added that recent statistics released by StatsSA paint a worrying future, with unemployment in South Africa reaching 29.1% in the second quarter (Q2) of 2019.<\/p>\n “Fuelled by an economic slowdown, 6.7 million workers are without jobs and 2.7 million are too discouraged to seek employment,” he said.<\/p>\n “If these workers are added to the unemployment figure, it suddenly jumps to 40.9%; referred to as the broad definition of unemployment.”<\/p>\n “Mining output increased by 3.5% in Q2, compared to Q1, and manufacturing only slightly increased by 0.6%.<\/p>\n “We were hoping to see more out of these sectors, after the first-quarter slump in GDP, but at the current rate our economy will most likely only grow at 0.6% in 2019,” he said.<\/p>\n