Some of the country’s leading economists say structural reform and policy certainty are necessary for jobs to be created and the economy to grow.
They say even after the national elections, it will take some time to improve the economy as the country is still grappling with the aftermath of state capture.
Economists share the view that there are still hurdles that are preventing the country from realising greater economic growth.
Chief Economist at Econometrix, Dr Azar Jammine says improved education and skills development are key to growing the economy and creating jobs.
He adds, “State capture and corruption has been eating away at a lot of the revenue that could be generated from the economy and going to just a handful of pockets and not redeployed within the economy. Some of it, or much of it has been has been leaving the country. Secondly, we have inadequate education or skills development, so a lot of people who are looking for jobs just can’t find them.”
Economist at Investec, Annabel Bishop says she expects economic growth of one-point-seven percent in 2019 but adds that the country needs growth of around three percent to get out of its economic woes. She says the country still remains in a tight spending position due to its high debt and that of state-owned enterprises.
She says,”We obviously have a lot of debt and concern from many state owned entities which also weighs on the fiscal figures. So the situation we have in South Africa depends on many factors, not just trade but also commodity prices and indeed interest rate expectations. So I think the risk certainly for 2019 is for a volatile domestic currency, but we’re not looking for any interest rate hikes in the half of this year.”