![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/01\/Sentiment.jpg\")
<\/a><\/p>\nSentiment surged in 2018 after Cyril Ramaphosa won the leadership of the ruling African National Congress and took over as president of the country, but has since slumped as reforms stalled.<\/p>\n
Business confidence remains fragile and \u201ccould tilt either way\u201d in the coming months depending on the fiscal and economic outlooks presented by Ramaphosa and Finance Minister Tito Mboweni in their state-of-the-nation and budget speeches in February, the chamber said.<\/p>\n
Assessments by credit-ratings companies, which are expected after the budget, will also affect sentiment, it said.<\/p>\n
The economy unexpectedly contracted in the third quarter and is stuck in the longest downward cycle since 1945.<\/p>\n While the government expects gross domestic product growth of 1.2% this year, the World Bank this week became the first key institution to lower its forecast below 1% due to power-supply constraints vexing the country.<\/p>\n Eskom, which generates about 95% of South Africa\u2019s electricity, resumed rolling blackouts over the weekend to prevent a total collapse of the national grid.<\/p>\n \u201cThe economy\u2019s potential is wavering and requires positive corrective steps to direct the economy in an appropriate direction,\u201d Sacci said.<\/p>\n<\/a><\/p>\n