SACurrentEconomicIssues

This article is predominantly about how the business and consumers in South Africa are recovering from  bankruptcy after November to January's massive spending. Okay, I'm sure you saying consumer's spending should be a good thing. No it is not instead it comes with a lot of changes to the country's economic stability. "HOW?". When the consumer spending increases the productivity has to increase as well, they have to align and that does really happen remember we dealing with people, they do have an same wants and their wants are unlimited. They cannot all be met and satisfied with the resources that we have, I'm sure it's the first you hear about the 'Scarcity', it exists the resources that the country posses are limited so they need to be utilized effectively and efficiently. Between November and February the mining and agricultural sector's production is was not high, it was lesser than what we actually anticipated and therefore the co...

OK what does that really mean? According to World Economic Forum this actually means that South Africa is failing to maintain the balance between energy security and access with environmental sustainability and affordability. So out of 114 countries evaluated South Africa was number 113, that is not good at all right? As we all know the energy source of S.A. is a non-renewable resource that means it has to be used efficiently and effectively and that does not come at a cheaper price, it very prohibitive. The energy supply takes a larger portion of the government's overall expenditure because not so longer the State Owned Entity known as a Eskom was bankrupt and the state had to come to its rescue with a huge amount of capital and the coal is also running, it really easy to use other alternatives of energy as very expense. In the minister of finance's budget speech it was said that the government will no longer opt to Nuclear energy since the country was having an economic d...

Okay this is music to my eyes but I'm not sure if it's the feeling is mutual to all of us. What does this 'lifting of Rand' mean anyways?  This actually means that our currency can compete with other currencies, it also means its value has increased and the country, South Africa, can purchase and sell quite a number of things at fair and affordable cost. This is why the currency exchange rate is measured everyday and every hour so we can know where we standing. It is said in the article that the GDP levels helped to do all that, that means our production levels are quite impressing that what we actually anticipated. Remember not so long ago, investors were pulling our, the inflation was attacking and the debts and problems were flocking in giving us an unbearable burden, I believe this a good come back for the entire country, now our future economy is promising and it is becoming clearer. A 1.3percent increase to our production is quite a good number compared to 1p...

The increase in Value Added Tax left many South African citizens in awe, that was less expected right? South Africa's economic outlook is bleak so we should brace ourselves for changes like these because this is not the last one. This article tells us more about the government's motives about increasing the tax, well to many people that is not really a justifiable decision because the poor are also under the same dome. Yes this is big and it also came out as a huge shock but the government also had to make sacrifices for instance this one "The R85billion reduction in government expenditure over the next three years..."Malusi Gigaba. Reducing government's expenditure was not an easy decision too but it had to be taken to protect the people more especially the poor from the demand pull( i.e. inflation). I really think this step( the increase in VAT) is really good step at least we making up for our mistake, we trying to recover from the junk status and we can...