Old Mutual Investment Group SA economist Rian le Roux said that recent disruptions in the market and a weakening rand could result in a lower gross domestic product growth (GDP), higher inflation, and wider current account deficits for the country. The labour unrest had also highlighted South Africa's lack of competitiveness to the world, he said.
Le Roux warned that foreign investors have good reason to be concerned about the macro-economic risks of 16 emerging markets, adding that South Africa measures dead last in terms of its combined current account and budget deficits, including the quality of primary and higher education, the flexibility of wage setting, hiring and firing practices, and pay and productivity. South Africa was also ranked absolute last for labour-employer cooperation, Le Roux said.
Fin24 reports that Le Roux said he was not optimistic that conditions to stimulate growth would improve significantly over the near-term.
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