Signs of return to cofidence for business and consumers- index

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 consumer spending had to be backed by the cost push inflation, remember the country is still recovering from the junk status so capital investors are very few, inflation had to come to our rescue. That is the only way to make consumer to slightly decrease they spending. The holidays hype is not good for the economy, as it causes the increase in employment of the resources.

 The transactional  activity is at a good rate now, but the imminent Value Added Tax hike and the tax on sugary drinks will negatively affect as the consumer spending will decrease due increased price. The motives behind the increase in VAT are very promising, that decision had to be taken but at least the fuel prices have decreased so that will at least help the consumers.

I strongly believe that if the our spending can be monitored we can still have good and stable economy, this all in our hands, the resources are with us so do the brains. We just have to all think like economists.

SOURCE: NEWS24, CITY PRESS
LINK: https://www.fin24.com/Economy/signs-of-return-to-confidence-for-business-and-consumers-index-20180314