BUSINESS MAVERICK: SA’s WEF ranking advances while business confidence rises

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BUSINESS MAVERICK: SA’s WEF ranking advances while business confidence rises By Ed Stoddard

The World Economic Forum has released its 2019 Global Competitiveness Index that looks broadly at how competitive an economy is through the prism of 12 pillars: institutions, infrastructure, ICT adoption, macroeconomic stability, health, skills, product market, labour market, the financial system, market size, business dynamism and innovation capability.

It will be no surprise if President Cyril Ramaphosa mentions this in his weekly newsletter next Monday. He did promise in his State of the Nation Address that South Africa would work on improving its rankings in such areas. South Africa also did well – perhaps surprisingly so – on the “macroeconomic stability” pillar, with a score of 88 out of 100 and an overall ranking of 59. This pillar assesses the level of inflation, which is currently moderate, but also the “sustainability of fiscal policy”. One has to wonder if the WEF downplayed or missed some of the red flags here, with Eskom and a potential Moody’s downgrade both glowing hues of crimson.

 

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