Business confidence index hits lowest in 35-year history

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Though SA entered a marginally less restricted lockdown at the beginning of May, the effects on the economy are still expected to be deep

Business confidence fell to the lowest levels ever recorded during April as the cumulative effects of the coronavirus lockdown, ratings downgrades and an overstretched fiscus took hold in an economy already confronting recession.

Though SA entered a marginally less restricted level 4 lockdown at the beginning of May, the effects on the economy are still expected to be deep. “SA’s challenges are compounded by four constraints that affect the economy at present — recessionary economic conditions; the Covid-19 lockdown; an over compromised fiscal position, and the downgrading of the SA's sovereign credit rating to junk status,” the chamber said.

 

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BUSINESS MAVERICK OP-ED: Small businesses need nurses and doctors tooAmid all the chaos of this system shock, we need to ensure that we do not make short-term populist decisions that will severely damage South Africa’s ability to rebuild our small and medium businesses, and ensure that they are built to withstand the next system shock.
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