S African economy heading for downturn

Mail and Guardian

The summer of the EU’s 2012 meltdown will signal SA’s winter of discontent as an economic crisis looks set to play out with devastating consequences.

The prospect of financial gloom morphing into outright doom has been driven home by warnings from economists, as well as from the finance ministry itself, all of whom agree that the worst is yet to come.

“It is important to clearly understand the developments unfolding in the world, particularly in Europe, and what potential impact they could have on the South African economy,” Finance Minister Pravin Gordhan told Parliament on Tuesday.

As bland as Gordhan’s assessment of the situation sounds, Dawie Roodt, chief economist at Efficient Group, put it into context: “The question isn’t whether the situation in Europe is going to affect South Africa. The question is how bad it’s going to be.  Read more…

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