12 June 2017

South Africa: The Slippery Slope of Economic Collapse

analysis

For many people, the news that South Africa is officially in recession is merely another bad headline after a few weeks of bad headlines - the Gupta emails leaks, indecisiveness of the ANC's NEC and even the DA's internal strife. However, this time, there is nothing sensationalist about the crisis we face. It is a tragedy.

Two more pieces of bad news hit South Africa in the past week - the news that the country is now officially in a recession and that Moody's, the credit rating agency that historically has been most positive about South Africa's prospects and which gave itself time to re-evaluate the situation post the recent Cabinet reshuffle, decided to downgrade our credit rating by one notch, with a "negative outlook". The politicians immediately sprang into action, blaming Bell Pottinger's "white monopoly capital" and the private sector.

For many people, the news is merely another bad headline after a few weeks of bad headlines - the Gupta emails leaks, indecisiveness of the ANC's NEC and even the DA's internal strife. However, this time, there is nothing sensationalist about the crisis we face. It is a tragedy.

Let's start by looking at the concept of a recession....

South Africa

Govt 'Confident' That It Can Address Recession - Cabinet

Government is confident in its "systematic interventions" to address economic challenges and improve the performance of… Read more »

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